When legendary oil tycoon Boone Pickens first declared, back in May, that oil was going to $150, the oil market listened, took heed and jumped up to $130.
Since then, Boone has declared the world has reached peak oil, that oil will go to $300 a barrel if Congress doesn't jump into renewable energy, and that oil will fall to $100 in 2 years (presumably after everyone buys his wind power).
But after losing countless millions last month when his multi-billion dollar commodities hedge fund dropped 35%, Pickens is reasonably sure oil won't fall much farther:
"I don't think it'll drop below $100," Pickens told Reuters in a telephone interview. "I would say $110 is where it might go, something like that."
And this time the markets seem uninterested in his opinion. As oil drops back below $114, $100-$110 doesn't seem like much of a floor considering the bleak global economic picture.
Then again, if there's a lesson to be learned from Boone, it's that the oil markets shouldn't listen to a guy who just invested $2 billion in a wind farm.
See Also:
Boone Pickens Loses Big On Oil, Natural Gas Bets: Wind-Farm Ads Worked Too Well
Boone Pickens To Congress: If You Don't Buy My Wind Power, Oil Will Go To $300
