Economist: NOW is Time to Buy Oil

" hitting a new one year high topping 75 dollars a barrel today's market made and says now. Is the time to invest in oil. Is Jeff Rubin former chief economist for CIBC. World markets -- the CEO. Good morning Alexis. So where she and guess now even though oil prices are up 60%. Year to date it's still a very good investment tell -- why."

" Well because I mean the red ink hasn't even dried on the recession we're in -- the very early innings of of a recovery here in. We're already seeing oil at 75 dollars out once they gain the International Energy Agency is scrambling to revise up its forecast. And that's basically because of what's happening and other economies like the Chinese economy where oil imports are ready up 15% from a year ago. I think Alexis by by Christmas we're probably looking at 8090 dollar oil and probably by the end of the first quarter back in the triple digit range."

" It very interesting -- because -- her Gary telling moments ago he kept -- 45% of their portfolio. Is hedged against rising fuel prices. But as much as 65%. Of their portfolio with -- next year. That's a signal to -- jet that corporate America particularly airline industry thinks that fuel prices are going on higher."

" I think you're absolutely right and I guess you know. When we've seen next Memorial Day weekend gasoline prices pretty close to four dollars a gallon we may. Rethink the the billion dollar bailout of industries like bottle because we're industries like auto and air travel this is going to be extremely problematic and we're not talking about a cyclical problem we're really talking about a long run structural problem here."

" Yeah Jeff it's very interesting usage yes. That war. Call this global recession isn't really the sub prime mortgage market but the rising fuel prices. A year ago. How could render the recovery in 2010."

" Well that's an excellent question Alexis because it's not clear to me. That the global economy is any better prepared to deal with triple digit oil prices than it was two years ago and I guess the warning to investors is that when we do see oil. Back at triple digit oil prices. We've got to make sure that the economy can withstand that. I think in retrospect we're going to find that the real culprit of the recession. -- was oil prices and we're going to have to find a way of unionizing the economy from higher oil prices. And I think that means going back to a much more regional and local economy that is -- anywhere in the oily as the global economy."

" It chapel on people at school one figure out how will I do it how blue line invest in oil and take advantage of some of these macro trends how."

" I think there there are many exchange rate finds that they get exposure to oil. Probably you want to get exposure to unconventional oil because unfortunately. The moral supply isn't the kind of oil that we can afford to bird it's. It's the kind of oil that's coming from five miles under the ocean floor from tar sands I mean that's where future supply growth is going to come from. That's where investors one exposure but recognize that. That's very expensive and problematic supply which is one of the reasons why -- going to be talking about triple digital press."

" And so so the easiest way to do that is really to buy an exchange traded fund or mutual fund that's got a heavy commodity influence."

" That's right and meanwhile I don't think one has to be a particular stock -- here I mean a rising tide is going to lift all boats as far as west Texas intermediate is -- what you really want exposure to. Is the demand supply dynamic that is going to see oil become even fiercer in the future."

" All right Jeff Rubin and so much for -- you know market -- great Kenya."

" My pleasure take care the."