Quick Take: Oil Supply Concerns Abate
NEW YORK (TheStreet) -- The price of crude oil had been moving higher this summer, but it has suddenly turned lower. Jeffrey Grossman, president of BRG Brokerage discusses with TheStreet's Gregg Greenberg whether the selling will continue.
Grossman said that due to the high amount of supply, oil likely will work its way lower over the next couple of weeks. He added that fears about Middle Eastern tensions sent oil prices from $95 per barrel to $105 per barrel rather quickly.
The commodity didn't stop there, and once it cleared $105, it was considered a breakout. However, prices only reached $109 before stalling and going lower. Now that support near $105 is cracking, Grossman said that $100 is likely the next stop.
Grossman was quick to remind traders, however, that any chatter regarding an improved Chinese economy or issues in the Middle East could quickly push prices higher.But without any major headlines from the Middle East and ample supply of crude oil now coming from the U.S., these prices cannot be justified, according to Grossman. He also said Wednesday's inventory numbers were not very constructive to higher crude oil prices. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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