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Oil May Dip Slightly, But Will Hit $80 by Next May: Pickens

Boone Pickens, Texas oilman and chief executive of BP Capital, told CNBC’s “Squawk Box” that he expects oil to hit $80 a barrel before he turns 80 next May.

“I think there’s a little bit too much oil around right now,” Pickens said Friday. “I think you could fall back to maybe $67, $68 [per barrel]…. I think it’s a possibility. But that is going to move on up."

Oil & China

"What I see from the producers’ side is that the Saudis, the Russians -- all the producers -- want a higher price for oil and what they’re searching for is how much can the market stand, how much can the world economy stand on price. They’ll keep pushing it on up as far as it will go.”

Oil recently fetched $72.86 per barrel, up 36 cents on the New York Mercantile Exchange.

Pickens shorted natural gas last year because there was “too much gas” -- and said the action “made our day.”

“We got a late start to the summer this year, so gas is still suffering,” Pickens said. “I think gas will suffer on into 2008. All those things will clear up with time. A few months in a commodity market going down or up just scares hell out of everybody… You need to look at it on a longer-term basis than that. At the same time, if you’ve got your neck stuck out in a commodity market, you can lose a lot of money real quick.”