Boone Pickens announced he was shorting oil and natural gas futures today, claiming that it will trade in the mid-80s at some point in the start of this year.  He said that historically demand is low in 1Q and 2Q, and that demand will return in the second half of the year.  He expects oil to be over $100 by end of year again.

Somewhat supporting this speculation was oil inventories rising more than expected.  If you combine the seasonlity of oil, and the potential lower demand from inflation of gas prices and the minor recession we are in right now, and we support this view.  Remember, we said oil will trade in the mid-80s weeks ago based on the same logic Pickens is saying now.  Just more evidence that our stock picks are in sync with the true nature of global economic controllers.

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