Jim Rogers Says Oil Prices Will Keep Rising
Source: Wall Street Pit (5/5/11)
". . .because the world's oil reserves are shrinking."
Oil prices are more likely to continue rising because the world's oil reserves are shrinking, well-known investor and commodities bull Jim Rogers told CNBC Thursday.
"I said to you, where's the oil? I still want to know where is the oil, everybody wants to know. You know why the price of oil goes up? Because there is not a lot of oil around," Rogers said-while pointing out that the IMF "has come to the conclusion that the world's oil reserves decline by 6% a year," and that is an assertion for the rising price of crude.
"Say they don't decline by 6%, say they decline by 4%. That means in 25 years there is no oil at any price," Rogers said, adding that rising oil prices will "hurt some people very badly" and some co.'s will go out of business.
"We will certainly have dips [in oil prices], we will certainly have consolidation, I hope we do. If oil goes into a spike, if it goes parabolic, you have to sell it," Rogers said.
Rogers also said that silver will probably fall given it rose too fast.