May 20 (Bloomberg) -- Oil rose to a record above $127 a barrel in New York after investor T. Boone Pickens said he expects prices to reach $150 this year.

Pickens, chairman of BP Capital LLC, made the comments in an interview broadcast on CNBC today. Credit Suisse Group AG and Societe Generale SA raised their oil prices forecasts for 2008 and 2009 in reports today, citing investor flows and supply limitations.

``Crude is still strong, it could easily get to $150'' said Robert Montefusco, a broker at Sucden (U.K.) Ltd. in London. ``But by that point governments will be so jittery they'll be forced to take action.''

Crude oil for June delivery advanced as much as 79 cents, or 0.6 percent to $127.84 on the New York Mercantile Exchange, the highest since the contract began trading in 1983. Prices are 92 percent higher than a year ago. It traded for $127.50 at 1:54 p.m. in London.

To contact the reporters on this story: Alexander Kwiatkowski in London at akwiatkowsk2@bloomberg.net

Last Updated: May 20, 2008 08:59 EDT