Oil and energy trading magnate T. Boone Pickens was on CNBC earlier this morning with the prediction that we will now see $80.00 per barrel oil before he turns 80 years old. That is only next May, or just over 10 months from now. He noted with demand where it is and with capacity maxxed out that if you are speculating in oil prices there is just no way you can be short oil, even though it could go back under $70.00. Pickens also hinted that Saudi and OPEC are trying to find the right equilibrium on oil prices as high but not too high.
Oil is trading at $72.91 (+$0.41) in early trading this morning, and it appears that part of the boost in oil prices may be on his comments. We also had the International Energy Agency report saying global energy consumption would increase next year, and seperately there were gas line attacks by rebels in Mexico that have impeded supplies this week.
Jon C. Ogg
July 13, 2007