Oil prices, which have fallen 70 percent since July, are unlikely to fall below $40 a barrel, billionaire hedge-fund manager Boone Pickens said today.
“I don’t think you will stay at that level very long because you are going to start shutting down a lot of projects,” he said at a press conference in New York. “It will be obvious we can’t sustain anything like that.”
Crude, which rose to a record $147.27 a barrel on July 11, dropped to $40.50 a barrel on Dec. 5, the lowest in almost four years, after a credit squeeze earlier this year sent the U.S. and Europe into recession, cutting energy demand.
Oil may rise to $100 a barrel by “this time next year” if there is an economic recovery, said Pickens, who manages funds linked to energy commodities and equities through Dallas-based BP Capital LLC.
“I don’t think you will stay at that level very long because you are going to start shutting down a lot of projects,” he said at a press conference in New York. “It will be obvious we can’t sustain anything like that.”
Crude, which rose to a record $147.27 a barrel on July 11, dropped to $40.50 a barrel on Dec. 5, the lowest in almost four years, after a credit squeeze earlier this year sent the U.S. and Europe into recession, cutting energy demand.
Oil may rise to $100 a barrel by “this time next year” if there is an economic recovery, said Pickens, who manages funds linked to energy commodities and equities through Dallas-based BP Capital LLC.
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