(Oct 16): The oil market is in the process of reaching its “complicated bottom” as oil reserves globally — except for those from fracking — continue to decline, according to well-known commodities investor Jim Rogers. “We are going to look back one day, a couple of years from now, and say that in 2015, 2016, 2017 and maybe even 2018, oil made its bottom,” Rogers tells The Edge Malaysia in an exclusive interview during the CAA International Cocoa Conference 2017 organised by the Cocoa Association of Asia in Singapore.
“I don’t know what the absolute bottom will be, but oil reserves around the world continue to decline, except for fracking. But after it makes its bottom, prices will go higher for a while.”
He does not rule out the possibility of oil’s returning to about US$30 a barrel and eventually bottoming out. Recall that oil price fell to a five-year low of US$27.88 a barrel last year but saw a steady climb to US$55.74 a barrel recently.