April 29 (Bloomberg) -- Oil may rise to $125 to $150 a barrel later this year, Boone Pickens, a billionaire energy investorB7BNDTAS7OJF"></a>.

``The second half of the year I think you'll be back up substantially above where you are now,'' Pickens said in an interviewYJM679VUZKBE"></a>.

Crude oil for June delivery dropped $3.12, or 2.6 percent, to settle at $115.63 a barrel at 2:58 p.m. on the New York Mercantile Exchange, the lowest close since April 17. It was the biggest one-day decline since March 31. Futures surged to a record $119.93 a barrel yesterday. Prices are 74 percent higher than a year ago.

Pickens said prices eventually might rise to a level that could affect consumption.

``When I hear these politicians, I'm amused when they want to bring the price down, cause if they bring the price down it will encourage more use,'' Pickens said. ``And so then if you have more use, then demand goes up and then the price is immediately back up higher than it was before.''

A possible Brazilian discovery that could have 8 billion barrels of oil wouldn't bring dramatic changes, he said.

``The 8 billion will come in handy, and that's about all,'' Pickens said. ``It's not going to solve any problems.''

To contact the reporter on this story: Edward Klump in Houston at eklump@bloomberg.net.

Last Updated: April 29, 2008 19:36 EDT