Video: 'Quantitative easing will be good for commodity prices' "As Dick Cheney, the Vice-President of the United States, said when he was chairman of Haliburton Oil, There will be an average of 2pc annual growth in global oil demand over the years ahead, along with, conservatively, a 3pc natural decline in production from existing reserves," reads the Trust's website. Dr Colin Campbell said in his report, The World Oil Supply 1930-2050, 'There is only so much crude oil in the world, and the industry has found about 90pc of it. Professor Goldman of the California Institute of Technology summed it up when he said 'Better to believe in the tooth fairy than in future supply of new sources of oil. Most of the planet has been explored extensively, and even if some new fields are found, they won't delay the peak by more than a few years."" We believe that oil prices will remain firm in the medium-term and continue their uptrend. Short-term volatility caused by economic events in the Eurozone, as well as traders taking a cue from market instability, is likely to continue - but oil companies with growing production, cash flow and active exploration programmes are set to continue to prosper," he said. Our fund is well positioned to benefit from the re-rating of the sector as share prices catch-up with the enterprise values dictated by the commodity. What's more, geopolitical events in North Africa and the Middle East have supported the oil price in recent weeks, and Mr Damaskos thinks that the Fed's intentions to do a further round of quantitative easing will push the oil price up further. Dollar devaluation has historically resulted in higher commodity prices. Stronger economic growth leads to greater demand for commodities, notably oil. China is launching measures to stimulate its growth and, mainly targeting infrastructure, which should result in greater energy consumption. Stronger demand is facing a tense supply situation as the geopolitical issues appear deeply rooted. The rising oil price trend, therefore, looks set to continue," he said.