This morning CNBC hosted oil guru T. Boone Pickens for his oil outlook. He thinks oil is going on up and he thinks within a year that you’ll see $100 oil. There is no history of oil being here and the economy is ‘still whistling along.’ Pickens still doesn’t know where that breaking point is as far as oil prices that would break the economy.
He previously noted that the fourth quarter would be volatile and again noted the supply/demand imbalance with 85 million barrels per day supply and demand is 88 million barrels. If you adjust oil for inflation to the 1970’s and 1980’s oil’s highs would really be over $100 adjusted for inflation. T. Boone Pickens was still bullish with his last forecast, although he did not offer any formal price targets. Here are the other stories that have led up to this:
- PetroChina (NYSE:PTR) has surpassed GE to be the second largest company by market cap.
- Recently Goldman Sachs issued a higher "Super-Spike" target noting oil could hit $135/barrel and $4.50/gallon.
- GE is becoming a stealthy oil company.
- Anadarko up over 2% after filing for its MLP to come public.
- Valero rose recently even on an earnings warning.
- Ken Heebner is still quite bullish on black gold as well.
Jon C. Ogg
October 17, 2007