Pickens Calls For Much Higher Oil

On CNBC this morning, T. Boone Pickens issued his newest decree on higher oil prices. Keep in mind that Pickens was just calling for oil to possibly hit $148 per barrel again just earlier this week after criticising the Obama administration for attacking the oil and gas sector with higher taxes and with more regulations.  His warning is that the Saudis cannot add enough capacity amid sanctions against Iran without going into their storage as opposed to just more production.

Pickens clarified this morning that his prior view is that Brent North Sea Crude could hit $148 per barrel but that would not be the case on West Texas Intermediate Crude.  His view is that Brent is the global market price now.  Still, America is producing far less than it consumes.  Pickens thinks that natural gas prices have gotten so low that the fuel could easily be used as an alternative.  Nat-Gas is barely $2 here but it is much more expensive elsewhere.

JON C. OGG