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From Benedicte Gravrand, Geneva: Canada’s Canoë / Le Journal de Montréal reported that Jean-François Tardif sees only one direction for the mid to long-term oil prices: upwards. Mr. Tardif thinks that within 10 years, the price of a barrel will be US$200 or more. The fund manager of Sprott Opportunities Hedge Fund can only find arguments in favour of the increase in the value of ‘black gold’.

“It is always difficult to predict the short term direction. But the mid to long term trend is bullish”, he said recently in a telephone interview from his Toronto offices.

Mr. Tardif is sincere; he believes in the American geophysicist Dr Marion King Hubbert’s theory, who predicted in the 50s that the oil production in the U.S. would reach its highest point in 1970 before declining. According to the theory applied on a world scale, we should be currently at the height of production capacity.

Unprecedented historical growth Oil prices, just as that of all other products, evolve according to supply and demand. “Demand keeps on increasing”, Mr. Tardif said, ”especially in Asia. And the rate of the growth is unprecedented in history”. He reiterated that over the last 25 years, the fastest rise in demand has come from the U.S., at an average of rate of 1.5% per year. Whereas demand in Asia, especially in China and India, has increased by 5% per year. And it is not to supply 300 million inhabitants, but nearly 3 billi......................

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