Friday, May 8, 2015

T. Boone Pickens Sees Oil Back to $70 a Barrel by Year-End

Speaking at the Skybridge Alternatives, or SALT, hedge-fund conference, Pickens said the closing of around rigs (848 have closed according to Baker Hughes) over the past year as oil plunged to multiyear lows would inevitably cut supply, has ensured that crude inventories have peaked, according to MatketWatch.

It isn’t just that drillers are holding back. Bankers are also nervous, Pickens said, and that will restrain financing for production as well.

I have watched Pickens for decades. He probably knows more about oil than any other person in the US. Oil is now trading around $58 per barrel, way off its lows. As I detailed in the EPJ Daily Alert earlier this, Pickens was forecasting a rebound in oil when it bottoming at around $44.00 per barrel.

Over a 12 to 18 moth period, Pickems has also said that he expects oil prices will return to $100 a barrel.


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