Oil tycoon T. Boone Pickens, who made and lost fortunes targeting some of the largest U.S. explorers in the last 4 decades, has cashed out as the worst crude market downturn in decades drags on.
Pickens who has sold all his oil holdings and is awaiting the very best moment to obtain back in, he explained Thursday in an interview on “Bloomberg Go.” With prices low, mid-size U.S. oil companies for example Pioneer Natural Resources Co., Anadarko Petroleum Corp. and Apache Corp. are acquisition targets for bigger firms like Exxon Mobil Corp., he explained.
I won’t re-enter until starting to attract on inventories. This is a key point
Crude prices have slumped 70 per cent since June 2014, leading the oil industry to get rid of more than 250,000 jobs and slash over US$100 billion in spending within the last year, with more cuts expected this year. The reductions should lead to a stop by oil production, which would boost oil prices back to the US$50-$60 range by the end of the entire year as long as the economy doesn’t enter an economic downturn, Pickens said.