Prices will climb because supply isn't keeping up with demand, Pickens, the founder and chairman of Dallas-based BP Capital LLC, told CNBC today. Oil advanced on May 16 when Goldman Sachs Group Inc. boosted its estimate for the second half of the year to $141 a barrel, from $107, citing supply constraints.
Crude oil for June delivery rose 40 cents, or 0.3 percent, to $127.45 a barrel at 9:01 a.m. on the New York Mercantile Exchange. Futures reached $128.19, the highest since trading began in 1983. Prices are 97 percent higher than a year ago.
Credit Suisse Group AG and Societe Generale SA raised their oil prices forecasts for 2008 and 2009 in reports today, citing investor flows and supply limitations.
Brent crude oil for July settlement rose 38 cents, or 0.3 percent, to $125.44 a barrel on London's ICE Futures Europe exchange. The contract touched a record $126.34 on May 16.