New Sources of Oil Production Could Push Oil Back to $60, Analyst Says

Barring any unforeseen geopolitical events, oil prices are likely to hit $60 a barrel before they hit $80 a barrel, according to Phil Dodge, an analyst at Stanford Group Energy.

"More oil is available in the market and coming into the United States, and at some point, that will cause the price to top off," Dodge said.

However, others including CNBC Contributor John Kilduff, disagree. According to Kilduff, oil supplies will continue to struggle as tensions in Nigeria, Turkey, Iran, and Northern Iraq persist.

"There's just so much trouble," said Kilduff, who is senior vice president and energy analyst at Man Financial. "There's so much investment dollars coming into the crude oil market. This recent rally has been highlighted by open interest increases, which confirms to me, we still have higher to go."

Still, Dodge is looking for additional supplies of oil to enter the market. He cited new production coming on line from Saudi Arabia later this year, as an example.

Also, oil inventories were up about 1 million barrels last week, Dodge said.

"If oil prices stay in the 70s, when OPEC meets in September, I think they will decide to raise their production ceiling, and maybe in the meantime, put some more oil into the market," he said.

U.S. crude oil is currently trading above $72 a barrel.