For what it’s worth, legendary energy investor T. Boone Pickens reversed his oil position yesterday.
The billionaire investor had been shorting light sweet crude through the first quarter, a position that had much of the energy world convinced $100 barrels wouldn’t last long. It’s also a position that kicked Boone’s BP Capital Energy Equity Fund in the teeth. It was down 14% in the last two months.
“I think I made a mistake,” the Texas octogenarian told a CNBC cheerleader by way of explanation. “I thought oil in the second quarter could come off $10, but I don't think that's going to happen. In the second half, you're going to see oil above $100. The major oil companies have peaked on their production. It's awful hard for them to add to their reserves and their production.
“Look at the producer countries. They have all kinds of reasons to keep the price up and they're going to keep the price up. The only way I could see [oil dropping to $50] is a global recession… a serious global recession.
“I don't believe I will ever see $50 oil ever again."
The billionaire investor had been shorting light sweet crude through the first quarter, a position that had much of the energy world convinced $100 barrels wouldn’t last long. It’s also a position that kicked Boone’s BP Capital Energy Equity Fund in the teeth. It was down 14% in the last two months.
“I think I made a mistake,” the Texas octogenarian told a CNBC cheerleader by way of explanation. “I thought oil in the second quarter could come off $10, but I don't think that's going to happen. In the second half, you're going to see oil above $100. The major oil companies have peaked on their production. It's awful hard for them to add to their reserves and their production.
“Look at the producer countries. They have all kinds of reasons to keep the price up and they're going to keep the price up. The only way I could see [oil dropping to $50] is a global recession… a serious global recession.
“I don't believe I will ever see $50 oil ever again."
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