NEW YORK ( TheStreet) -- Crude oil prices are pulling back on Thursday, but could have more room to go on the upside. SCS Commodities' Tom Reilly tells TheStreet's Joe Deaux what he expects.
Without military intervention in Syria expected over the next day or two, crude oil prices have started to drop, but when something does happen, spot crude oil prices could jump as much as $5 to $8 per barrel, according to Reilly.
While the news could quickly push prices higher, the move will not likely be sustainable he added, unless Russia or Iran respond in the days following the strike.
He did not argue that crude oil could climb to $150 a barrel, and said it is unlikely. The only way a move like that can happen is if there is some sort of response from those two countries, he observed.He concluded that traders could look to sell oil, if Russia or Iran does not retaliate within a couple of days of the military action. Oil prices will start to trade based on fundamentals by late September, assuming everything plays out in the next week or so and nothing happens beyond the initial strike in Syria, Reilly predicted. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell