Marc Faber: Oil Doesnt Have a huge downside risk

Marc Faber: One hears all kinds of forecasts that oil prices will tumble and some are forecasting oil prices to go up substantially. There are all kinds of views. The fundamental fact is simply that not only for oil but for other commodities as well the production cost has risen very substantially. So I think that new oil will cost at least around $60-70 a barrel for the exploration and the capital investments. Therefore, I do not think that oil has a huge downside risk, but we live in a volatile world. In July 2008 we were at $147 a barrel and within six months, we dropped to $32 a barrel in December 2008. I would not want to necessarily go short on oil for the simple reason that the situation in the Middle East is deteriorating at an accelerating pace. - in ET Now