Oil Outlook

Marc Faber : "If you take a very optimistic view of the world, namely a global economic recovery, demand in the western world will pick up, and demand in the emerging world will continue to rise very strongly, and so from a very optimistic point of view, you should be long oil.

In a very pessimistic scenario, you have to assume the unrest will shift also to Saudi Arabia and other countries in the gulf, and at that stage, maybe production may be curtailed, and in that case, obviously oil would go up ballistically... In both cases you should be long energy and energy related shares.

The fact is the world is burning more oil than it's adding new reserves. So the level of overall proven reserves, or the existing oilfields - that production will go down. Finding and developing new oilfields, is a difficult and costly exercise." - in CNBC

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