Rogers: Oil to $100 After ‘Correction’

Commodities expert Jim Rogers says that, while he can't pinpoint the exact timeframe, oil will reach $100 a barrel after a "correction." Readers will remember that Rogers predicted the start of the commodities rally in 1999.

[Editor's Note: Get a free copy of Rogers' book, Hot Commodities, here.]

"I'm just not smart enough to know how far down it will go and how long it will stay, but I do know that within the context of the bull market, oil will go over $100," Rogers said in a Tokyo interview. "It will go over $150. Whether that is in 2009 or 2013, I don't have a clue, but I know it's going to happen."

Currently, MoneyNews' sister publication Financial Intelligence Report is forecasting that oil will fall to as low as $40 a barrel.

Crude oil has fallen as much as 36.4 percent to a 20-month low since hitting a peak of $78.40 a barrel in mid July. Crude dropped to a low of $49.90 a barrel yesterday and has since rebounded to around $52 today. A 20 percent decline generally indicates a bear market.

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But Rogers says the fundamentals for $100 a barrel oil are still very much alive. There hasn't been a major oil discovery in 30 years and economic growth in China and other Asian countries is boosting demand for oil, he says.

Rogers says the current correction in oil prices is to be expected.

"When you have big bull markets, 50 percent corrections, or retractions, are normal," he said in an interview yesterday. "It has often happened throughout history in a bull market."

Rogers pointed out that the gold bull market in the 1970s experienced a two-year correction before resuming.

"Corrections go down long enough to scare everybody out and make sure they give up, and then they turn around," he said. "We are in a secular bull market for commodities which has another decade or two to go."

On a side note, Rogers also revealed that he's holding airline shares, a strange investment given his prediction that oil will rebound to $100 a barrel. But the move is paying off.

"The only airline where I'm losing money in the last year is Japan Airlines," said Rogers.

Financial Intelligence Report, in its latest edition of "The Four Ways to Profit from the Oil Bust of 2007," recommends our favorite airline stock. To get your free copy, go here now.

Editor's note:
Jim Rogers Predicts Huge Profits in Commodities -- Click Here
FIR predicts oil prices could fall to $40 a barrel in the next 12 months. Get a free copy of "Four Ways to Profit from the Oil Bust of 2007" and prepare yourself today.
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