Crude Should Make a Move to the $80 Level, Product Drawdown is Key

Jeff Grossman of BRG Brokerage tells TheStreet’s Jill Malandrino crude levels still seem in limbo, even with the Keystone Pipeline vote, because Canadian oil coming is allowed to be exported, while domestic oil is not. Grossman believes crude will continue to act on its own and the vote is really just another mechanism. The biggest remains the oil supply glut. There is some chatter in the market place OPEC will tighten 1-2 million barrels per day, similar to what happened in 2008 to provide some support. Near term, Grossman believes crude may have bottomed at the $73 level and it should rally or at least try to approach $80, especially with colder weather here. The key factor is going to be heating oil and finally starting to see some drawdown in the products.