May 20 (Bloomberg) -- Crude oil rose above $129 a barrel in New York for the first time after billionaire hedge-fund manager Boone Pickens said oil will reach $150 a barrel this year because supply isn't keeping up with demand.
Producers are ``running out of oil,'' Pickens, the founder and chairman of Dallas-based BP Capital LLC, said on CNBC today, reiterating comments he made to Bloomberg News on April 29. Goldman Sachs Group Inc. and Deutsche Bank AG also said in the past month that prices would rise.
``It's not just Boone Pickens; just about every big global bank has raised its price forecast in recent weeks,'' said John Kilduff, vice president of risk management at MF Global Ltd. in New York. ``When prices last fell below $20 in 2001 there was a surplus. That's no longer the case. There's now a deficit.''
Crude oil for June delivery rose $2.15, or 1.7 percent, to $129.20 a barrel at 12:55 p.m. on the New York Mercantile Exchange after reaching a record $129.60. Prices have doubled from a year ago. A strengthening of the euro against the dollar added to the gains.
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