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Oil Would Be Fairly Valued at $60: Oppenheimer's Fadel Gheit

The massive oil spill in the Gulf of Mexico has negatively impacted the shares of the companies involved. Will it have a direct effect on crude oil prices? Jason Gammel, managing director of research at Macquarie, and Fadel Gheit, managing director and senior analyst at Oppenheimer, offered CNBC their insights. (Scroll down for their stock picks and pans.)

"I really think the market is overreacting," Gheit said. "Demand is still very weak."

Gheit said that oil prices would be fairly valued at $60 a barrel, as speculation—not demand—is what has driven them toward $90.

Though Gammel said he sees oil holding steady at near $85, he doesn't think it will top $100 until 2013.

Gheit believes if crude did reach that high in 2010, it would be devastating to the healing economy.

"It'd definitely bring down consumer confidence and spending, and would bring the economy down with it," he said.

Recommendations:

Gammel Likes:

Chevron

ConocoPhillips

Exxon Mobil

Gheit Likes:

Schlumberger

Smith International

Brigham Exploration

Pioneer Natural Resources

Gheit Dislikes:

Transocean

Cameron International

Halliburton

BP

Anadarko Petroleum

Counterpoint:

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What They Said Last Time:

  • Gheit's Latest Appearance on CNBC (April 15,2010)
  • Gammel's Latest Appearance on CNBC (April 29,2010)

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

Neither Gammel nor his family own shares of Chevron, Conocophillips or Exxon Mobil. None of these companies are his investment banking clients.

Either Gheit or his family owns shares in BP and Exxon Mobil. XTO Energy is an investment banking client.

Disclaimer