Analysts: Don't Be Fooled By Oil Dip
Crude oil prices rose moderately Monday -- but gasoline futures hit a seven-month high. Where are the raw and refined fuels headed this year? Two energy analysts had one answer for CNBC's Erin Burnett: up.
Addison Armstrong, an analyst at TFS Energy, reminded "Street Signs" viewers that the April contract expires Tuesday -- thus leading to a crude sell-off and slightly softer prices. But he foresees a new record being hit this summer, citing tight supplies, low refinery runs -- and no OPEC meeting until September.
Saad Rahim, manager of the Country Strategies Group at PFC Energy, said the crude price slide of late was in response to the recent OPEC meeting -- and not in response to fundamentals. He augured that the near-term will see a small price drop -- until "gasoline season," which will bring a strong rise. Rahim said that oil may return to $60 a barrel by year's end -- and may even hit $65. But he opined that a recession is "not a risk right now," as it'd take a slowdown "a long time to feed through" the economy.