Mar 27, 2011

Marc Faber on crude oil

I still think in a risk/reward view oil is a very attractive commodity.

If you take a very optimistic view of the world namely a global economic recovery, demand in the Western World will pick up and demand in the Emerging World will continue to rise strongly, so from a very optimistic point of view you should be long oil.

[On the flip side,] if you take the ultra bearish scenario, like I do, where you think everything will collapse, that there will be World War III and collapsing countries in the middle East, then supplies will be curtailed and prices will go up.

~ Marc Faber, "Accumulate gold and Japanese shares, says Marc Faber,"Business Intelligence Middle East, March 25, 2011 (quoting Faber from a recent CNBC interview)

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