Oil (OIL) prices are opening the week on a bit more steady footing after the long-running selloff had sent crude to levels not seen since March.
And Rockwell Global Capital Chief Market Economist Peter Cardillo tells Yahoo Finance he thinks the slide we’ve seen in oil recently may finally be coming to an end.
“There’s a possibility we might take a dip under $40, but I think we’re basically looking at a price range of between $50 and $55,” he says. “I’m certainly not in the camp of people who are talking about $30 and $10 and $15.”
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Cardillo makes the argument that there’s good reason to think the Organization of Petroleum Exporters is going to have to back off its plan to keep pumping at current levels, which has helped drive the recent price decline. The reason: Its biggest producer is feeling the pinch.
“Even though Saudi Arabia started this, the OPEC nations are hurting, including Saudi Arabia,” he notes. “From a political standpoint, that could be very dangerous.”
And while Cardillo doesn’t see a big change in prices, he does feel the recent fall has run its course.
“Unless we’re headed to some sort of global recession-- which I don’t think we are-- then oil prices will just hang around this $50 range,” he argues.
Cardillo adds there is one other wild card in the oil mix that may keep prices surpressed for a long time to come.
“The market is looking at that huge amount of oil that could come from Iran if there is a final (nuclear) deal,” he points out. “If it does, it’s going to keep prices at the low end of the range.”
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