T. Boone Pickens Calling For Higher Oil Prices

The famed T. Boone Pickens came on CNBC for a telephone interview again with new predictions for high oil prices.  It was a bit interesting that he doesn’t have a stated target for oil this time but he did note the likelihood of $85 to $88 oil in Q4, and he thinks the the fourth quarter will be exciting times in energy trading.  Here are some other things he noted:

• BP said Mexico’s problems could be a problem for us.
• Higher odds of a recession will cut oil prices if demand drops.
• $80 oil, if you are on the brink of a recession, could push you into one.
• He said he didn’t know what price the oil levels would impact the stock market.
• Natural gas is still in an oversupply, but maybe not as much as first thought.

Yesterday, we gave a Best of Breed list of stocks with oil at $80 per barrel and gave the link for the first time T. Boone Pickens said that we’d see $80 oil before he turned 80 years old.  As a reminder, the two key energy ETF’s are: Energy Select Sector SPDR (AMEX:XLE) and Oil Services HOLDRs (AMEX:OIH). 

Jon C. Ogg
September 13, 2007