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Oil Rally Won’t Last; Analyst Expects Bottom in Low $20s

Oil prices reached their highest level in three weeks on Thursday, but the rally is set to fade, according to one analyst.
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Oil prices reached their highest level in three weeks on Thursday, but the rally is set to fade, according to one analyst. When asked if $30 a barrel was a reasonable bottom for oil as the closely watched commodity reached almost $34 in Thursday's session, Craig Erlam, senior market analyst at Oanda, based in London, said prices are actually headed lower. ‘I think the bottom is going to be more like the low $20s,’ he said. ‘I think we’re seeing a temporary correction at this moment maybe back towards the high $30s. But I do think further downside is on the table.’ Prices rose on a possible deal between Saudi Arabia and Russia to cut production. Oil fell almost 15 percent since the start of the year and 41 percent over the past 12 months. TheStreet’s Scott Gamm has details from Wall Street.

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