T Boone Pickens Says $30 Oil is the Bottom

Well, I know people are trying to ride oil higher so I would love for the bottom to be in.

The recent rout in oil has prompted many investors to ask what could be in store for 2016, as many speculate that crude will continue to trade in the $30s for the foreseeable future.

"Close to the bottom. I was just a year off. We will be back to $70 to $75 by the end of the year," Pickens said.

The oil tycoon added that the world is currently using approximately 95 million barrels a day, and is oversupplied by about 1 million barrels of oil. Therefore he does not believe that it will take much to balance the market. When that occurs, the price of crude will move up fast.  

The problem is that where will that 1 million of barrels of supply will dry up from. It probably won't be from the Saudis or Iran because they need money for proxy wars and subsidies. The need to break the US shale oil industry and hold on to market share is probably greater then losing money. I think the US Shale industry will blink first and they will cut production or go bankrupt.