Boone Pickens Sees Oil Prices Rebounding: WSJ

Texas energy investor Boone Pickens is forecasting a return to higher-priced oil, though he admits he has lost money as crude prices have plunged this year, according to a report.

Crude for February closed lower Tuesday , and has shed 16% so far this year.

Pickens' hedge fund firm, BP Capital, has seen its largest fund lose 6% of its value in 2007, the Wall Street Journal reported Tuesday. That fund comprises $2 billion and has a 10% allocation to oil and natural gas futures.

Pickens remains bullish on oil, however. He cites global production, currently at about 85 million barrels a day, which is still roughly equal to demand of 85 to 86 million barrels. The balanced market will result in a rise in prices, Pickens said.