Industry Needs to See Consolidation Before Crude Can Stabilize

Crude shows a draw down in inventories for third week in a row which is bullish for oil because it means demand is increasing or supply is decreasing. Luke Rahbari of Stutland Volatility Group tells TheStreet's Jill Malandrino while the inventory reports have seen a trend in draw downs, he is not surprised to see crude trade below the $60 level due to moves in the euro and U.S. dollar. Rahbari says he is confident in the summer driving season increasing demand, but the key to getting crude higher and on a solid level is industry consolidation and shaking out smaller producers. That could happen as interest rates creep higher and borrowing gets more expensive.