Los Angeles, CA - T. Boone Pickens says the price of oil will be 60 dollars per barrel before it will drop below 40 again.
Pickens appeared on CNBC Thursday and said the price will rise to 75 dollars or more by the end of the year and even higher if the world economy recovers.
"If they do recover, then the price will move on up and if it's slow in coming out of the recession, it will stabilize for some period of time," he said Pickens said oil prices are steadily rising because "OPEC needs the money" to fund their internal programs and that he predicts "you'll see 60 [dollars per barrel] before you see 40."
Oil was trading at around 43 dollars a barrel this week.
Pickens says the U.S. imported 62-percent of its oil last month, which is down 5-percent from January.
"Have we had a breakthrough? Probably not," Pickens said. "We've had demand destruction because of the recession and all, but we're still paying 13-billion dollars (a month). That is 328-thousand dollars per hour sent to foreign governments."
Pickens also criticized Treasury Secretary Tim Geithner's plan to raise taxes on oil and natural gas companies.
"(Oil and gas companies) are on their back right now because, with prices like they are, you've shut down five hundred or six hundred rigs already. And, so you want to get those people back to work. You don't do it by raising taxes."
Pickens is in California where he was speaking at the ECOnomics Conference.
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