NEW YORK (TheStreet) -- West Texas Intermediate resumed its decline, plunging 4% on Wednesday. The commodity is likely to find support near $60 per barrel, Brian Kelly, founder of Brian Kelly Capital, said on CNBC's "Fast Money" TV show.
Both the U.S. and OPEC have cut their 2015 oil demand estimates, which means global growth could be slowing, he added. Perhaps investors are starting to realize this, hence the selloff in the broader market with the S&P 500 down 1.65%.
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Volatility is certainly returning to the market, said Tim Seymour, managing partner of Triogem Asset Management. Weak global economies are driving up the demand for U.S. assets, such as stocks and bonds.
Oil can go lower than $57 per barrel, possibly to $45, according to Steve Grasso, director of institutional sales at Stuart Frankel. If demand is truly the issue behind lower oil prices, the market could be in for a rude awakening.
It's probably too early to buy most energy stocks, said Karen Finerman, president of Metropolitan Capital Advisors. However, she did buy April-dated call options on Seadrill (SDRL) , looking for a bounce. Investors in the stock market seem to be "panicky," she added.
The large decline in energy stocks should create a few M&A opportunities, according to Mike Kelly, managing director and senior analyst at Global Hunter. Specifically, Whiting Petroleum (WLL) , Energen (EGN) and Laredo Petroleum Holdings (LPI) could be takeover targets by large companies such as Diamondback Energy (FANG) and Marathon Oil (MRO) .
Pioneer Natural Resources (PXD) seems an attractive company for investors to get long, Grasso said. Don't forget about energy infrastructure, such as pipeline companies, Seymour added. These companies don't depend on rising or falling oil prices but get paid for transporting it instead.