("It looks like a lot of people…)
NEW DELHI: Even as crude oil prices have dipped to all-time lows, Jim Rogers of Rogers Holdings told ET Now that the decline is 'artificial'. "Some of this (oil price decline) is artificial. OPEC is trying to drive down prices because of Shale competition. The oil situation is very artificial at the moment."
"It looks like a lot of people are dumping. This is artificial. Though I would not be dumping oil myself," Rogers said. Asked about the US Shale gas boom, Rogers said, The Shale boom will not continue very strong especially if prices do come down. That is high cost oil, and remember those are very short lived wells," Rogers said. "The production runs down very quickly," he added.
Voicing his opinion on the Narendra Modi government, Rogers said that it is important for the new PM to deliver. "Positive changes are taking place. We were extremely impressed by the things that he has said, that he continues to say. Unfortunately not much has happened on the ground so far." "Unless he (Modi) comes up with something pretty quickly, I think there is going to be a lot more disappointment and disillusion among many investors." "After all the markets have been hyped a lot because of his perceived changes, if they do not come soon there is going to be a lot of disappointment," he added.
Asked if he would advice investing in gold, Rogers said, "I am not buying gold. I own gold, I have not sold any gold. I am waiting if gold goes under US $1000 per ounce. I hope I am smart enough to buy more." "At the moment I am just sitting and watching. If it goes up from here, I own enough gold. I would not be disappointed," he said.
Commenting on the global growth scenario, Rogers was of the opinion that 'growth nearly everywhere is slowing down'. "Europe and America put sanctions on the Russians, which of course means Europe is suffering more than America. However, some parts of the American economy are starting to slow too. China is slowing down because of self-imposed reasons. They had to do something about inflation and the property bubble. What you are witnessing is basic economic slowdowns in parts of the world which is not unusual. It has been five or six years since our last slowdown, why not have another one?"