Crude Oil : One of the most attractive Commodities right now

Marc Faber : .... Crude Oil is probably among the most attractive commodities because the supply of oil could be interrupted at some point. I am aware that the production in the US and Iraq is going up, but by and large in order to bring on new oil reserves today, the price has to be, say, above $80. So we are not that far above production cost at the present time. - in a recent interview with ET NOW

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber

Marc Faber: Crude Oil is probably among the most attractive Commodities because the supply of Oil could be interrupted at some point

ET Now: Crude of late has been slightly toppy. Are you still bullish on crude?

Marc Faber: Yes, crude oil is probably among the most attractive commodities because the supply of oil could be interrupted at some point. I am aware that the production in the US and Iraq is going up, but by and large in order to bring on new oil reserves today, the price has to be, say, above $80. So we are not that far above production cost at the present time.  - in ET NOW Click here to watch the full interview >>>>

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

MARC FABER : Crude Oil, Gasoline are things people need

MARC FABER : "Crude oil, gasoline are things people need. Thank you very much. The fed boosts these items that people need to go to work, to heat their homes and so forth," "Great success,"
  -  in Bloomberg News Click Here to Watch the Full Interview >>>>

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

War on Syria Impact on Crude Oil & Gold Prices

ET Now: How do you see the increasing geopolitical risk impacting crude and gold?

Marc Faber: The impact will be more severe on financial assets. The price of gold has recovered sharply from $1180 to around $1400. On further hostilities, we will have some profit taking in gold, but we have made a major low at $1180.
Oil price has already been rising. but could rise further depending on the expansion of the hostilities. Do not forget that Assad, though not a close ally, is aligned with Iran's policy. Therefore, if he is attacked, Iran may perceive this as an attack on Iran and may counter react. The hostilities could escalate and that may mean that the price of oil could rise quite substantially.

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber : Crude Oil is one of the very few Commodities that look attractive

Q: There has also been a big surge on crude prices, 5 percent up last week. Is this just a geopolitical one-off that is happening with crude or do you think something fundamental is changing with that commodity?

Marc Faber : Yes, actually I believe that crude is one of the very few commodities that look attractive from a longer term perspective. Between last November and February of this year was five times in the Middle East on five different journeys. My impression is that the whole Middle Eastern problems wi

ll get much worse before they get better. Maybe it will take years until they improve.

However, again as I mentioned to you, for you think money printing is the greatest things on earth. Money printing has a very destructive impact on economic life and on social conditions. When you print money, some assets and some goods and services go up in price. The increase in the prices exceeds the wage to salary.

So, most people actually suffer under money printing. But money printing benefits a few and so whilst income inequality increases and it leads to social and geopolitical tensions.

 - in CBNC TV 18 on July 8th 2013 
Click here to watch the full interview >>>>>>>


Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber Bullish on Crude Oil , Bearish on India

Marc Faber is Bullish on Crude Oil, and sees prices inching up gradually. This spells bad news for India, which is already paying more for oil than when crude was at its peak of USD 145, because of rupee depreciation.
  In a recent interview with CNBC TV 18 : Click here to watch the full interview >>>>


Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber: Buy Oil, Energy U.S. stocks, like KB Home

Marc Faber: Buy Oil, Energy U.S. stocks, like KB Home



Marc Faber :..".well I think from here onward stocks will move very selectively I happen to like energy because if the economy surprises on the upside demand will pick up , in actual facts the demand in developed countries has picked up and in emerging economies it continues to go up " "I think in a, let's say Goldilocks outlook, you have to own some oil,If you're very bearish about the world, it's a nightmare scenario in the Middle East and I don't think that Saudi Arabia can affect production shortfalls of Libya and Saudi Arabia itself is very vulnerable and so I would say under any scenario, I would own some oil and energy shares , but they have rallied a lot and they are overdue for a correction "...etc...

Marc Faber still positive on Crude Oil

Marc Faber :.....I am still positive about oil and I am aware that some analysts predict oil prices to drop to $30 and copper prices to drop 70%, but the fact is simply the oil demand now-a-days in emerging economies exceeds for the first time in the history of capitalism. The oil demand in the developed world and this oil demand in emerging economies will continue to go up. So the demand side looks quite strong.
On the other hand, you have prices between $70 and $80 and someone could argue well that that is a very high price and so maybe prices will temporarily decline - that may be the case. But I would like to point out that for any oil company to go and explore and drill for new oil, the oil price has to be around $70. Otherwise, they would not do it because the marginal cost of new production is around this level.
Secondly, unlike say a farmer who harvests, oil is a finite resource in the sense that once you pump it and you burn it, it is no longer there. The farmer can harvest his crop every year again and again and again. In the case of oil, once you pump it, it is gone and you use it. So in most countries, oil production is going down and oil reserves are going down. In other words, the world will hit one day peak oil, the way the US hit peak oil in 1970. So the dynamics between the demand and the supply side look actually quite promising in the long run. ...
Marc Faber in an interview with the economictimes.indiatimes.com dated 28 Sep, 2010

Marc Faber : Outlook for Crude oil

Marc Faber :" I am still positive about oil and I am aware that some analysts predict oil prices to drop to $30 and copper prices to drop 70%, but the fact is simply the oil demand now-a-days in emerging economies exceeds for the first time in the history of capitalism. The oil demand in the developed world and this oil demand in emerging economies will continue to go up. So the demand side looks quite strong.

On the other hand, you have prices between $70 and $80 and someone could argue well that that is a very high price and so maybe prices will temporarily decline - that may be the case. But I would like to point out that for any oil company to go and explore and drill for new oil, the oil price has to be around $70. Otherwise, they would not do it because the marginal cost of new production is around this level.

Secondly, unlike say a farmer who harvests, oil is a finite resource in the sense that once you pump it and you burn it, it is no longer there. The farmer can harvest his crop every year again and again and again. In the case of oil, once you pump it, it is gone and you use it. So in most countries, oil production is going down and oil reserves are going down. In other words, the world will hit one day peak oil, the way the US hit peak oil in 1970. So the dynamics between the demand and the supply side look actually quite promising in the long run. "
in www.economictimes.indiatimes.com

Marc Faber : Crude Oil is still the cheapest alternative for energy

I would not take off for a long time and believe me crude oil is still the cheapest alternative for energy and I live in the North of Thailand I mean the people in the countryside they still drive the motorcycs they are not giving to have a motorcycles with batteries but too expensive. So in emerging economies in the last 18 months although we had a huge collapse in economic activity globally their oil demand still growing and in the developed world it is going down and so forth I am convinced that in Asia the oil demand over the next 20 years will more than double so we consume today in Asia 22 million barrels a day. We will go to something like 40 million barrels. The oil production in the world is 85 million barrels of oil a day and every year we find new oil but we use much more oil than we find new reserves so essentially the reserve level in the world is going down. So eventually I suppose we will have much higher prices.
in India Economic Times

Marc Faber on Crude Oil Gold and Risky assets

Q: There has been another curious development these past few months, which is that gold has been rallying along with many of these so-called risky assets. Do you read it as a warning signal that gold has been around the USD 1,000/oz mark?

A: Basically to some extent it is a warning signal for central banks because since 2001 the price of gold has gone up four times and that should make central bankers think that there is some kind of inflation in the system. It may not be inflation in consumer prices, although as you know in India recently food prices went up by 15%. So, in general we are in an inflationary environment. We have in the US a central bank that purposely wants to lower the value of the US dollar in terms of its purchasing power and also wants to eliminate one of the functions a cash deposit has which is namely to be a store of value. So, we see an elimination of these conditions, I believe that a lot of people consider gold to be an alternative to cash as I do. Now can the price gold move down somewhat? Yes, of course but I think we have some support for gold prices as it moves down from Asian central banks that own very little gold.

Q: While gold and metals have had a pretty sharp rally, crude has actually not been moving with that much momentum. For crude prices how do you foresee the next couple of months shaping up?

A: We had a more than doubling of crude oil prices between December 28 of this year until recently from USD 32/bbl to over USD 70/bbl. A correction is possible in the order of 10-20% – that I don’t know but in the long run given the increased demand from emerging economies for oil and given the fact that every year we burn more oil than we add to reserves, I think that the fundamentals of oil for the long run are relatively favourable.
Via www.moneycontrol.com
Dr. Marc Faber also known as Dr Doom is an investment adviser, investment analyst and fund manager author and publisher of the Gloom Boom & Doom Report ,and the author of "Tomorrows Gold" . Dr Faber is known for his contrarian investment approach. Dr Marc Faber is associated with a variety of funds and is a member of the Board of Directors of numerous companies.
In 1987 he warned his clients to cash out before Black Monday on Wall Street. He made them handsome profits by forecasting the burst in the Japanese Bubble in 1990. He correctly predicted the collapse in US gaming stocks in 1993; and he foresaw the Asia-Pacific financial crisis of 1997/98 and the resulting global volatility. Dr Doom motto is "Follow the course opposite to custom and you will almost be right"
Mr. Faber is also the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery, and is a director of Ivanhoe Mines Ltd. , a mining firm focused on the Asia Pacific region. He is also an adviser to a number of private investment funds.