The Organization of Petroleum Exporting Countries is still pumping near record amounts of oil, China's imports have slowed and U.S.
“When there's bad news and something doesn’t decline, it usually means it's at a bottom and will be turning,” Rogers, who correctly predicted a commodities rally in 1999, said in an interview in Singapore on Thursday. “Whether we’re at a turning point or not, I don’t know yet and I’m watching this very closely.”
A persistent global glut of crude that's cut prices by half over the past year has prompted banks including Citigroup Inc.
West Texas Intermediate crude futures in New York plunged to $37.75 a barrel on Aug. 24, the lowest
“Some companies are stopping drilling and production is actually going down in the U.S.
Rogers also said he was watching Glencore
“It might be a good trade if you go public at a high price and you buy it back at a depressed price,” Rogers said, referring to Glencore. “That might be a wise thing to do. On the other hand, they have a lot of debt so I don’t know if they could do that.”
With the Bloomberg Commodity Index, a measure of returns from 22 components, plunging to the lowest level since 1999 in August, Rogers also sees opportunities for investors in other raw materials.
“Agriculture is probably where the best opportunities are,” he said. “I’m not buying rice and sugar at the
- Source, The Star Online