Boone Pickens Oil Price Projection Sends Oil to $129
May 20th, 2008 | By Contrarian Profits | Category: Featured, Financial NewsThe market appears to have picked up its ears at the latest oil price projection by legendary oilman and billionaire hedge-fund manager Boone Pickens.
Crude oil prices rose above $129 a barrel in New York for the first time after Pickens’ oil price prediction of $150 a barrel before the end of the year, according to Bloomberg.
Prices will climb because supply isn’t keeping up with demand, Pickens, the founder and chairman of Dallas-based BP Capital LLC, told CNBC today. Oil advanced on May 16 when Goldman Sachs Group Inc. boosted its estimate for the second half of the year to $141 a barrel, from $107, citing supply constraints.
“There is so much momentum in the market that it doesn’t take much for prices to reach new records,” said Brad Samples, commodity analyst for Summit Energy Inc. in Louisville, Kentucky. “We rose today after Boone Pickens basically parroted the Goldman line on prices.”
Crude oil for June delivery rose $1.82, or 1.4 percent, to $128.87 a barrel at 9:25 a.m. on the New York Mercantile Exchange. Futures reached $129.31, the highest since trading began in 1983. Prices are 98 percent higher than a year ago.
MarketWatch reports that stocks fell sharply on oil’s continued ascent “and a report showing a continued increase in producer prices fueled concerns that surging commodities prices will further crimp U.S. consumption.”
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