Jim Rogers: Petrol is Not Going to Stay Dirt Cheap for Five Years, Opportunities Exist

"They have to look at the same factors – supply and demand. If we look at energy, for instance, known reserves of oil have been declining for years. And then along came fracking. Fracking was a miracle, but fracking turned into a bubble. If you could spell fracking, people would give you money to invest. Now, fracking is not going to disappear. It’s going to disappear for a lot of people because some are going bankrupt. But fracking is still going to be around, but it’s not a bubble anymore. And they have to worry about supply and demand like everybody else.

Sugar is down something like 75% or 80% percent from its all-time high. I don’t know many things that are down 75% or 80% percent from their all-time high. So all commodities dealers, producers and consumers are going to have to worry now about supply and demand. Most consumers are going to be better off if you are asking about the next year or two, except [those exposed to] gold. So most people are getting a benefit from this collapse, at least in their cost of living, if they have a job.

But now we all have to start worrying, including producers and consumers, about supply and demand because the price of most commodities are not going to stay down here where they are. I don’t think petrol is going to stay dirt cheap for the next five years, because production is starting to decline. So the answer is simple – supply and demand."

- Source, SPGlobal