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Boone Pickens: When He Speaks, Oil Traders Listen

Friday, 22 Feb 2008 | 8:56 AM ET

This post is from guest blogger CNBC energy producer Judy Gee.

The March oil contract may have gone out like a lion, but the new front-month contract came in like a lamb. The contract for April delivery tested $100 but declined as low as $97 before ultimately settling lower for the first time since the rally took off last week.

Traders say the sell-off was largely technical. But perhaps a legendary oilman might have had something to do with it, too.

Boone Pickens, the man who accurately told us to get ready for $100 oil gave us a new prediction: a $10 to $15 correction in the price of crude in the second quarter before a reversal back above $100 in the second half.

He's shorting oil, shorting natural gas and betting on a wild ride. Meanwhile, on the floor of the Nymex, CNBC colleague Bertha Coombs says sellers are waiting in the wings for when oil gets back to $100. And when Pickens is one of them, you don't bet against him.

Questions? Comments? energysource@cnbc.com