Thursday, December 26, 2013

Do Not Sell Your Crude

There is excess supply in the crude market at the moment because of the Shale boom in the US. I am not sure how much long that is going to last because those wells are very short lived.

But, at the moment there is a glut and we could very well see lower prices. However, do not sell your crude. If prices go down there will first be a cut back on the Shale. Shale has to have high prices in order to bring it to market and secondly oil is going to go much higher over the decade. Other known reserves are in decline, every other country in the world has declining reserves. This is a temporary thing.

- Jim Rogers via the Economic Times: