Jim Rogers, chairman of Rogers Holdings, said the increase in the price of crude oil has ``years to go'' as known sources of petroleum are dwindling.
``I know that unless someone discovers a lot of oil, it can go to $150, $200'' a barrel, Rogers said in a Bloomberg Television interview. ``The facts are the world is running out of known oil reserves.''
Crude oil for July delivery rose $1.62, or 1.3 percent, to $123.92 a barrel at 9:51 a.m. on the New York Mercantile Exchange, after earlier dropping to $121.61, the lowest since May 15. Futures, which reached a record $135.09 a barrel on May 22, are up 89 percent from a year ago.
Rogers said he bought airline stocks around the world today, saying bankruptcies show the sector may be nearing a bottom. ``Bankruptcies are signs of bottoms, not signs of tops,'' he said
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Hmmmm... That may be true. Since we are essentially already at $150, $200 is not a stretch. HOWEVER, this guy is clearly not someone to ask for a stock pick. If he really thinks we are headed over $200 for a long time, he should not be buying airline stocks. If that is true then the bankruptcy's are just beginning in the industry. No one survives very long at $200/barrel. You would simply have to charge more per ticket than people would be willing to pay to cover the increased costs.
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