Now that the U.S. is set to surpass Saudi Arabia in oil production, how should investors feel about oil?
"I feel mixed about oil, right? I mean, look, the Saudis are trying to cut production. They made that announcement again today that they're extending these production cuts going into April, right? Saudi themselves can produce 10 million barrels a day, but they're only going to produce seven. So therefore they're trying to pull it back because they need the price of oil to go up because it's, you know, they're not happy with oil at $55 a barrel," said Kenny Polcari, managing principal at Butcher Joseph Asset Management.
He continued, "On the other hand, the U.S. now has become the leading producer and exporter of oil, both the natural gas as well as oil raw products. And so therefore, you know, the tide is turning. And so I think oil is going to, I think oil is going to find itself stuck in this $55, $60 range for a while. I mean, unless they all of a sudden pull so far back that they create supply shortages, which I don't think they're going to do at all."
"But therefore I don't think there's any reason for oil to be trading at $70 or $80 a barrel. I just don't think, there's way too much of it," said Polcari.