From S&P Global Platts, August 31:
Jim Rogers , global investor, chairman of Beeland Interests Inc. and author who co-founded the Quantum Fund with George Soros, spoke to S&P Global Platts editors Andy Critchlow and Sambit Mohanty to share his insights on the possibility of oil revisiting $100 a barrel, the investment opportunities that the agriculture sector offers, and the impact of energy transition on the metals sector
Commodities and energy markets have witnessed a broad-based rally in recent months and prices of some commodities have moved to pre-pandemic levels. What's the outlook for the markets from now until the end of the year?
All over the world, central banks and governments have printed and borrowed staggering amounts of money. It has never happened in the world history in such a short period of time.
When you have a lot of money and want to build a factory, it takes a long time. But if you go online you can buy cotton futures in 10 seconds. A lot of money is floating around now. And the easiest and fastest way to invest in is financial markets. And history also shows that when you have a lot of money it often leads to higher prices. That is what that has been happening. Right now there are a lot of new investors. At the moment it's all central bank money whether you like it or not. And I don't like it.
We had a little bit of pull back in crude prices after the OPEC+ deal to raise output. It's only a few weeks ago we had analysts telling us that about the possibility of oil going to $100 a barrel. Where do you see crude closing by the end of the year?
With all this money floating around, who knows, anything can happen. It has happened in the past and it will happen in the future. I do know that known reserves of oil are running out. Unless fracking becomes a huge, reliable and continuous source of energy, oil can go much, much higher. Yes, certainly we will have electric cars but that takes time. I would suspect that the price of oil would be higher by the end of this year than where it is now. And people will see higher prices in 2022 than what we have seen so far this year. We know about OPEC's decision to increase production, or they say they will. All the bad news is out here. And usually that means much of the news is out and it's time for prices to go higher again.
There is a lot of talk now about energy transition and the future of oil. Where do you think oil would be in 10 years from now given the world is pushing towards embracing cleaner fuels? Do you think oil will get its share of investments?....
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