NEW YORK (TheStreet) --OPEC ministers are holding an informal meeting in Algiers Wednesday, in order to address the two-year glut in oil. OPEC could announce an agreement in Algiers, but there won't be full details until November according to Reuters.
CNBC reporter Jackie DeAngelis was joined by Path Trading Partners chief market strategist Bob Iaccino and Equity Armor Investments managing member Brian Stutland during Wednesday's "Fast Money Halftime Report," to discuss oil expectations.
"I think what's going on in this meeting has been a negotiation on what should happen and take place come November. I think there will be a little tug of war between the parties involved. The Saudis look like they want to cut, Iran says they don't. Certainly, the Saudis aren't going to react to anything until they get some deal out of Iran," Stutland said.
Additionally, oil has begun to rally as of late and is higher again this afternoon. However, Iaccino explained why he would fade the current rally, meaning sell as the price is rising and buy as the price is falling.
"Iran ramped up to 3.6 million barrels a day rather quickly, and their increase is now slowed. They've been targeting 4.1 barrels, and they've said to the Saudis we would agree to cap at that level. They are trying to buy time because they've invested in ramping that production up. They aren't going to agree to anything in this meeting, and if they do it's not going to be enforced," he noted.
However, it isn't just the glut in the Middle East driving him to say he would advise fading the rally. Iaccino pointed to the domestic production of oil as another reason.
"When I look over the broad horizon that is the oil patch, I just see more oil coming. I'm looking for $41.36 within the next six weeks or so," he added.