NEW YORK (TheStreet) -- Oil prices backtracked from Monday's bounce and moved lower on Tuesday. West Texas Intermediate crude slid nearly 2% to $67.85 a barrel on Tuesday, around 36% lower than its mid-summer high. Prices have been squeezed after OPEC declined to constrain production despite global oversupply.
"The suppliers are going to start restraining production at some point," predicted David Bechtel, principal of Barrow Funds, in a call. "They're going to want to see oil get back up into the mid-$80s, low-$90s minimum. It's probably a project that occurs over the next 12 to 18 months."
Until then, John Stoltzfus, Oppenheimer's chief investment strategist, advised Wall Street to weigh the balance of positive effects against the negative: Increased consumer spending due to lower gas prices against geopolitical risk in oil-dependent countries such as Russia and Iraq.
"We believe it is particularly important for investors to become neither positively taken by nor even overly concerned by the current drama being generated by the decline in the price of oil," Stoltzfus wrote in a note.
Automakers were rising Tuesday after November sales impressed. Fiat Chrysler (FCAU) reported its best November in 13 years with sales growth across its brands, leading shares 2.8% higher. General Motors (GM) saw sales jump 6% in November, making the month its best November in seven years. Shares climbed 1.5%. Toyota (TM) added 1.4% after unit sales climbed 3% compared to an estimated 2.1% increase.