Monday, August 25, 2008

Jim Rogers: Oil rise will continue

Jim Rogers is on record as saying that the rise in oil prices should continue over the coming decade.

In a recent Bloomberg article, Rogers reiterated his call for higher oil and commodity prices over the next several years.

"Investor Jim Rogers, who in April 2006 correctly predicted oil would reach $100 a barrel and gold $1,000 an ounce, said Aug. 23 that crude oil prices will climb.

``Over the course of time, it's a bull market,'' Rogers, 65, chairman of Rogers Holdings, said after an investor conference in Kuala Lumpur. While oil could fall to $75 or rise to $175, prices will appreciate during the next 10 years, he said."

Did the recent, sharp summer correction in oil and resource prices mark the end of the 2000s commodity boom, or will the drop seen in leading commodity indexes such as the GSCI and CRB turn out to be a cyclical down move in a continuing, long-term bull market?

More on this to come.