NEW YORK (TheStreet) --WTI Crude futures were lower 3.11% to $45.22 per barrel on the New York Mercantile Exchange early Wednesday afternoon as inventory data released this morning indicated the largest oil buildup in decades.
Oil inventories increased by 14.4 million barrels in the week ended October 28, representing the largest weekly increase in 34 years, according to data collected by the U.S. Energy Information Administration. Consequently, oil prices dropped.
GRZ ENERGY founder and President Anthony Grisanti explained why he would not be a buyer of this dip during CNBC's "Fast Money Halftime Report" today.
"I am not buying this dip; I'm selling any rally that comes into this market. This was the year we were supposed to re-balance the oil markets and right now crude and product supplies in the U.S. are 70 million barrels above last year at this time," Grisanti explained.
Additionally, supply is 230 million barrels above the five-year average, he noted.
"If OPEC can't come to an agreement at that meeting at the end of November we're going to see a $30 handle on oil prices," Grisanti said.