Pieces in Place to Reduce Oil Price: Schork
Fundamental pieces are in place for the lowering of oil's price, but until the dollar appreciates and speculators stop betting up the commodity it will remain at high levels, Stephen Schork, editor of The Schork Report, said on CNBC.
"We have demand destruction, we have supply," Schork said. "Therefore, we should have lower prices. It's not happening. You need to see appreciation of the dollar. You have to get all these traders through the past year, who've been selling dollars, taking that money and buying crude oil."
"We have to get them moving the other way, buying back those dollars and selling the crude oil," he said. "That's the only place you're going to get a sell-off."
Schork disputed the notion that speculators are not pushing oil prices.
"Who are the people who are telling us that speculators don't matter? Jim Rogers. Boone Pickens," he said. "We're being told, 'Speculators don't matter,' by a bunch of speculators."