As oil tumbled to its five-and-a-half year low of $51.12 per barrel on Tuesday, energy guru T. Boone Pickens announced that he acquired six new stocks in the third quarter, three of which were oil and gas companies.
The chairman of BP Capital Management?s Portfolio is 97.8% composed of energy stocks, and he believes the price for oil is going to rise in the near future.
?I said it would be back up to $100 a barrel 12 to 18 months,? he told Fox News on Monday. ?Demand, with the lower price of oil, demand will come up,? he added.
Pickens also said he expected increased mergers and acquisitions activity in the oil industry with the fall in prices.
In the third quarter, Pickens? three new energy stock buys were: Western Refining Inc. (WNR), WPX Energy Inc. (WPX), Gastar Exploration Inc. (GST).
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