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Crude Oil Has Seen the Bottom but Will Remain Sluggish

Crude oil has seen the lows for 2015, but will remain in a relatively stable range of $40-$50 for the remainder of the year.

Crude oil has seen the lows for 2015, but will remain in a relatively stable range of $40-$50 for the remainder of the year. Dan Dicker, Senior Energy Analyst for TheStreet, tells Jill Malandrino we have seen the 'W' recovery he was looking for. Out of all the things financially plaguing the oil market right now, China is number one on the list, just like the equity markets. Every headline out of China has been creating massive moves in equities and crude oil is no different. Dicker sees more volatility in the commodity over the next couple of months, and maybe even the next quarter or two, but what he does not see is a new major low being set here, even with crude trading around $44. Supply glut concerns remain as there has been no production cuts from OPEC, Saudi Arabia continues to pump oil at record levels and Texas oil made record levels for 2015. With all those headwinds, oil trading in the $30s is simply not sustainable for production. Longer term over the next several months and quarters, Dicker says there is some indication that Bakken oil is flattening out and some production will come offline which is positive for crude oil prices, but for right now, prices will remain sluggish.

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