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Pickens: Oil Could Hit $100 A Barrel

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Amid falling oil prices mostly due to fears of oversupply and a surging U.S. dollar, American business magnate and financier T. Boone Pickens said Tuesday that oil prices could reach $100 a barrel by the end of next year.

The 86-year-old billionaire, who chairs the hedge fund BP Capital Management, also revised his previous forecast in which he said that the prices would hit the $100 mark as early as this year. According to Pickens, the idea of “peak oil” — when oil production goes into an irreversible decline — should not be ignored as regions other than the U.S. are experiencing decline in their oil output, Reuters reported.

“I think you could very well be at $100 a barrel by the end of 2016,” Pickens said at the Commonwealth Club of California in San Francisco.

Although oil prices briefly recovered in February after a 60 percent drop since highs last summer, U.S. crude dropped to less than $43 a barrel last week to as low as $42.85 for the first time since 2009.

Oil prices have tumbled sharply partly due to weaker Asian and European demand and an increase in North American production. On Tuesday, U.S. crude futures were at nearly $47.40 a barrel.

A global oversupply of oil is set to rise as China slows crude imports. In the most recent month, crude imports in key Asian markets like India and Japan were also down 20 percent and 11 percent from a year ago, respectively, Reuters reported.

“Asia-Pacific oil … balances remain in surplus with pressure peaking in April/May from rising crude stocks,” PIRA Energy, a U.S.-based consultancy firm, said in a research note, obtained by Reuters.


8 Comments on "Pickens: Oil Could Hit $100 A Barrel"

  1. Plantagenet on Wed, 25th Mar 2015 3:04 pm 

    Pickens is always bullish on oil prices, but this time he may be right. The oil glut can’t last forever—and the end of 2016 is a reasonable time for oil prices to go back up after the oil glut ends.

  2. penury on Wed, 25th Mar 2015 4:03 pm 

    Pickens is correct, oil could hit 100 dollars a barrel and then the problem would be industry and consumers could not afford it. Oil is more likely to hit 20 dollars a barrel and still not be affordable for the majority. One of the problems with being an old,rich white man is that you tend to forget that you live in a society which is made up of less than 1 per cent of the population; Out here in the real world it becomes more evident each year that less is all we can afford.

  3. Perk Earl on Wed, 25th Mar 2015 6:11 pm 

    Wasn’t there just an article posted a few days ago in which Pickens was suggesting oil rebounding to $70-90 a barrel?

  4. Solarity on Wed, 25th Mar 2015 9:58 pm 

    “…Pickens was suggesting oil rebounding to $70-90.” As I recall that was a projection for the end of 2015.

  5. Perk Earl on Thu, 26th Mar 2015 12:05 am 

    So 70-90 2015
    & 100 by end of 2016

    Ok, Pickens we’ll remember these predictions.

  6. Davy on Thu, 26th Mar 2015 8:32 am 

    Pickens is market making here. It is easy to make such Pickens predications if one still believes in normal econ 101 environment of BAU. A return of growth has always happened for the past 60 years of BAUtopianism. The markets and the leaders at the levels of the economy, the political, and even the sheeples are still under the BAUtopian spell. That is expressed at every level with the normality of the last decades of BAU based life.

    The end of BAUtopianism will happen in a subtle way in the beginning just like we see with peak oil dynamics. I equate it to phase change of water. The process has a time frame but the actual changeover is rapid. We may have a turbulent period before the boil begins. I feel we are there right here right now with the approach of the boil.

    We will see these forecast of return of high prices. The market makers may even achieve a price rebound for a short period. Yet, these market makers at the top can’t create real growth needed to afford the higher priced unconventionals that has been responsible for the bulk of the oil production increase. Real growth cannot be manufactured by the markets by digital tools. All that is created is bubbles that do not represent real economic activity. Bubbles are faux representation of growth or we can look at it as bad debt and malinvestment. Bad debt and malinvestment is worse than no growth at all because the debt needed to achieve this remains and the productivity of the investment is not there. Valuable resources at a time of limits of growth have been pissed away.

    TPTB have hit diminishing returns to the ability of monitarization and financial repression. Only so much of this bad debt can be extended and pretended. Only so much rate reductions can occur. Only so much debt can be created. I see every indication demand and supply destruction has momentum and any attempts with counteracting inertia from the TPTB at the political and industrial level will not succeed. The real economy has been damaged and no amount of bubble activity will change that.

  7. Newfie on Fri, 27th Mar 2015 7:25 am 

    Get real. A dart tossed into a board marked with prices from $20 to $100 is just as likely to predict the price of oil a year from now.

  8. Apneaman on Fri, 27th Mar 2015 7:37 am 

    I predict that old white men who do not feel relevant anymore will make as many predictions as the MSM will let them.

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