Wednesday, November 19, 2014

Jim Rogers On Why the Saudis are Pushing the Oil Price Down (And Why the Decline Won't Last)

During a recent interview with Henry Blodget, Jim Rogers threw out at interesting theory as to why oil prices are plunging:
It seems to me that this is a bit of an artificial move. The Saudis, from what I can gather, are dumping oil because the US has told them to in order to put pressure on Russia and Iran. And it's probably not a real move. I read about shale oil like you do. But at the same time, North Sea production is declining. Russian production will start declining next year. All the major oil fields that we know about — all the production is static or declining. So it doesn't quite add up on any kind of medium-term basis I can see.

1 comment:

  1. Even priced in gold the price will plummet when the world economy finally succumbs to reality and demand drops 30%.