My view regarding oil is similar to that on other commodities. We had a huge increase in crisis after 1999 when crude rose from $12 a barrel to over $100 a barrel and a peak was made in July 2008 at $147. It came down again and then rallied again.
In general, regarding crude and other commodities, the cost of exploration and extraction has gone up and I do not foresee a meaningful decline. Now, can the oil price temporarily drop to $80 a barrel?
That is a possibility, but in general, unless the oil price is above $80 to $100, exploration will be curtailed. So my outlook for oil is rather positive, especially given the geopolitical situation that we are faced with.
