NEW YORK (TheStreet) -- Crude oil plunged $10 per barrel in the past five trading sessions. Alan Harry of Harry RE Trust reasoned that the same negative news continues to surface for crude oil: No production cuts and continued surplus.
The rapid drop in crude prices is hurting several oil producing economies, such as Russia and Venezuela. However, it is benefiting many global consumers, particularly those in China, Japan, India, Europe and the U.S.
While it may sound counterintuitive, the drop in oil prices will eventually help to buoy prices. As global consumers increase their energy and fuel consumption, demand for oil will increase, which should help boost prices, he explained.
United States Oil ETF USO data by YCharts
"I'm bullish on crude oil," Harry said. While it's possible the commodity could be headed to $45 per barrel if it breaks below key support levels at $50.80 and $52.50, he doesn't see it dropping below $50.
In fact, crude could be headed back to the $65 to $70 per barrel range. Right now, the commodity is oversold, he said, so a bounce back is expected.
Harry acknowledged that he's surprised there hasn't been a bounce yet. Normally when a commodity or asset sells off, there are at least some type of rallies to be had, even if they are short-lived. But this recent drop has almost been straight down.
However, if oil prices can rebound to $57.50 and $60 per barrel, then it could setup for a breakout to that $65 to $70 range, he concluded.