Oil is good long-term buy, says Jim Rogers
Source: BI-ME , Author: BI-ME staff
Posted: Sun June 20, 2010 2:28 pm

INTERNATIONAL. Legendary global investor and chairman of Singapore-based Rogers Holdings, Jim Rogers said oil is a good long-term buy because drilling opportunities are dwindling as the Obama administration mulls banning offshore operations after a BP well ruptured on April 20, causing the biggest oil spill in US history.

Speaking in a CNBC interview from Madrid on Wednesday, Rogers said. "I guess if anything you would buy oil because… drilling has been cut back. No drilling, no oil – higher prices," he said.

"The IEA is going around the world pleading with governments to understand that oil is running out.

Where is the oil? Tell us, so we can buy it," he said when asked about opinions by other analysts that there are plenty of oil reserves.

Alternative energy resources will be developed and new drilling permits will be issued when the price of oil will go higher, he said.

"At US$200 (per barrel of oil) they'll be drilling for oil at Buckingham palace," Rogers said.

The world is running out of known reserves of oil and over the next decade or so, the surprise is going to be how high the price of energy goes and how high it stays. We are running out of energy whether you like it or not, Rogers told India's ET earlier this month.

What else is Rogers buying?

The legendary investor said he bought euros this week and may acquire more because investor sentiment has turned too negative in the short term. It will take 10 to 15 years for the currency to disappear, he said.

“It’s time to go in and take the other side,” Rogers said. “It got beaten down so much.”

People in times of crisis frequently throughout history have looked for gold, not always but sometimes and that seems to be what is going on now. You have central banks which used to sell gold are now buying gold and you have massive amounts of people around the world clutching for gold, paper money everywhere is suspect, paper money everywhere is being debased, Rogers told the ET.

Tips for the future

"It is 2011 that one has to worry about. I expect more currency turmoil in the future. I am shorting stocks, I have been shorting emerging markets, I have been short technology, the NASDAQ in the US because that was very very strong in the last 18 months or so, stronger than the world economies going to be. I am sure a major international financial institution that people think is very sound, I happen not to think so and I own commodities," rogers said.

"I hope that if the world collapses, shorts protect me on the long side and then short side and if the world starts going into even more money printing, then commodities will save me on the long side."

"If we do have more slowdown because the G-20 starts withdrawing stimulus, I suspect the central banks will print money because that is all they do. So I would rather be long commodities and short stocks which is what I am doing."


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