aoi new 12m high, page-6

5. Oil
Yes, I'm worried about a short-term correction in the commodity markets; speculative excess is building. But once we're past that correction, I can't see how this sector won't continue to produce some of the best returns in the financial markets. Fundamentally, in commodity after commodity, I see rising demand and stagnant or falling supply. Even in oil.

The use of oil revenue to prop up dysfunctional regimes from Caracas, Venezuela, to Tehran, Iran, means surging demand (if you subsidize gasoline, lo and behold, people use more of it) and stagnant production (if you use your oil revenue to keep yourself in power, there's not going to be enough to invest in new production).
* Changed my sentiment..here,s why.