This analysis is from Evan Smith and Brian Hicks, co-managers of the Global Resources Fund (PSPFX). Oil prices have bounced more than 150 percent off of December 2008 lows but inventory levels remain at historically high levels despite a healing global economy. However, Goldman Sachs says robust 2010 oil demand growth will deplete these inventories over the next 12-to-18 months and diminishing production rates in key areas around the world will create a supply/demand imbalance. The above chart shows the decline in production from the worldrsquo;s top 230 projects. After peaking in 2009, production from these projects is set to fall for the next several years. Excluding OPEC countries (right chart), the decline rates quadruple from 2007 to 2012 (est). Over that time period, non-OPEC production is expected to fall by 2.5 million barrels per day. Only Brazil, Canada and the former countries of the Soviet Union are expected to see production growth. One of ...

Evan Smith, portfolio co-manager, appeared on Bloomberg News today to discuss his outlook for natural gas with host Mark Crumpton. Evan explained what concerns are giving him pause….

Evan Smith, co-manager of the Global Resources Fund (PSPFX), appeared on Bloomberg News today to discuss his outlook for natural gas with host Mark Crumpton. Evan explained what concerns are giving him pause. The commercial and industrial component of natural gas demand is still trending down roughly 12 percent year-on-year. Thatrsquo;s at a time when wersquo;ve had a pretty big response over the past year in reducing natural gas production. That being said wersquo;re 23 percent above where we were a year ago for storage levels. A lot of gas is in storage but wersquo;re coming up on the end of the storage season. I think very near term wersquo;re going to see some volatility, maybe lower gas prices but if you look past the next several weeks or maybe even month or so, Irsquo;m actually quite constructive on natural gas once we get beyond this weak period and things ...