Oil billionaire Boone Pickens is sticking to his guns. Even though oil prices have declined since the beginning of April as Iran fears fade, the Chief Executive of BP Capital tells CNBC he still thinks crude will be heading higher, "testing the highs" of $78 per barrel before the end of the year.
Texas energy investor Boone Pickens told CNBC that the recent spike in oil prices is due more to "fundamentals" than geopolitical tensions with Iran and that "you're going to look at $70 oil pretty quick." The billionaire said the current market is "very tight" because inventories have declined for seven straight weeks.
When the price of natural gas plummeted last Summer, hedge fund Amaranth took a nose dive. Now some investors are worried the same could happen with hedge funds that invested heavily in oil. "In the short term, market sentiment is overwhelmingly bearish and it's possible for (the) price to go lower than $50 (a barrel),” said Victor Shum, an analyst with Purvin & Gertz.
He's Boone Pickens--he's CEO of the private equity firm BP Capital--and he's a major "player" when it comes to oil (he has an estimated worth of $2.7 billion). He called in to "Squawk Box" this morning to talk about the falling price of crude. A little background before we get to what Pickens said.