Although oil prices have risen roughly 30 percent this month — their biggest monthly gain in 10 years — investors shouldn’t get caught up in the hype, said Mark Waggoner, president of Excel Futures.
"I think a lot of the movement has already been made," Waggoner said.
"We do think it’s going to go up for a short period of time, but we’re not going to be betting a whole lot more that we’re going up in this environment, especially as we go into summer."
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Excel has for some time been long in the oil market but is beginning to change its outlook, Waggoner said.
"I think we’re going to see the market rally for possibly a month, month and a half more — maybe until mid-July — and we’ll probably see it taper off as we go in later into the year," Waggoner said. "Of course, if the economy comes back fast then it will continue to go higher, but I don’t think that’s going to happen."
Oil ended the week at above $66, after touching a six-month high at $66.47 earlier in the session.
Disclosure information was not available for Waggoner or his company.
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