Despite plunging prices this week that have taken West Texas Intermediate Crude below $100 a barrel, legendary investors T. Boone Pickens and Jim Rogers both maintain their views that oil prices will continue rising over the long-term, citing increased demand and dwindling supply.
In an interview with Bloomberg Television today, Pickens said that he thinks oil is headed higher, noting that global demand for oil in the fourth quarter is expected to be 90 million barrels per day but production will only reach 88 million barrels per day. ''88 won't cover 90, consequently you have to kill demand with price, meaning oil prices go up,'' Pickens said in the interview.
Rogers noted in a CNBC interview that the world uses 86 million barrels of oil per day and new discoveries cannot make up for lost production, noting that even new discoveries in Brazil, if the bull case scenario is correct, would only account for two years worth of supply.
''Where is the oil? I still want to know where is the oil? You know why the price of oil is going up? Because there is no oil,'' Rogers said in the CNBC interview. Rogers also said silver prices need to come down because the rally in the white metal happened too quickly.