T. Boone Pickens: Oil Will Hit $70 By End of This Year

While no one can predict the future, there are many forecasting stabilization of oil prices in 2015.

T. Boone Pickens is calling for oil prices to end this year at $70 a barrel.

Pickens, a famed energy entrepreneur, is also the founder and chief executive of BP Capital, manages hedge and mutual funds investing in energy futures and stocks.

Pickens said that falling supply and rising demand will continue to stabilize prices, which have rebounded sharply since the middle of March. His remarks were made on stage the the SALT hedge-fund conference in Las Vegas.

“We’ve had 1,000 rigs go down in the past four months. The reason is that producers are not going to drill, and bankers aren’t going to let them either, because you’re not going to be able to make a reasonable return.”

Readings on oil inventories, which recently high an all-time high, are likely to head lower in the months ahead, Pickens said.

“Demand is very, very good for oil this year. Last year, it was very, very weak.”

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