July 3, 2012

Energy Prices Headed Up: T. Boone Pickens

Natural gas and crude oil prices should increase over the next six months, the billionaire energy investor says

Though retail gas prices at the pump have been coming down over the past three weeks, oil investor T. Boone Pickens (left) says that natural gas and crude oil prices could be higher at year end.

“If you give me a normal winter, I think you will see natural gas at $3.75 at the end of the year,” said Pickens, chairman and CEO of BP Capital, on Bloomberg TV on Monday.

On mid-day Tuesday, natural gas futures were trading at $2.84 per million British thermal units.

As for the direction of Brent crude oil, “I would say at the end of the year, you’re looking at $115 a barrel,” Boone Pickens said.

The price of Brent crude had been under $100 for the last 20 days or so, but that changed on Tuesday with concerns about supply disruptions tied to tensions in Iran, the possible closure of the Strait of Hormuz and an ongoing strike in Norway.

As for U.S. petroleum reserves, the long-term oil investor and billionaire said, “I don’t think there’s any doubt that the president is going to open up the Strategic Petroleum Reserves … which manipulates the price of oil.”

Pickens praised the recent drop in gasoline prices. “It helps the economy immeasurably,” he explained.

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