Oil Trader Sees Sideways to Slightly Higher Oil in the Near Term

Market volatility has made a comeback in October, and a big contributor is the movement we have seen in the energy complex as oil continues to test key levels on the downside. Jeff Grossman of BRG Brokerage tells TheStreet’s Jill Malandrino the movement in oil is fairly unprecedented and has caught many traders off guard over the past couple of days. Grossman says one of the biggest issues is supply and he will be looking for more clarity on production when OPEC has its meeting on November 27. As of now it seems as if producing countries are will discount but not willing to concede on marketshare. Grossman explains that oil cannot really go much lower before it starts impacting energy-related stocks because it doesn’t pay for them to produce, but that could also curb extra production. And while Grossman has heard reports that oil can go to the $50-$60 level, he believes we will drift sideways and eventually work our way a bit higher in the near term.