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Crude Oil Could Hit $75 Per Barrel, Analysts Say

Monday, 21 Nov 2011 | 1:49 PM ET

Crude oil prices dipped Monday and could continue the downward trend going forward, “Fast Money” experts said.

“If support around $95 breaks, we could easily see it go down toward $75 per barrel,” said Abigail Doolittle, an analyst with Peak Theories Research. “It’s been trading up in a bearish pattern for quite some time, and it really does appear as though it’s going to break down.”

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Ongoing concern over European economies took their toll on oil prices, down 1.25 percent in midday trading from a last week’s high of $102 a barrel.

“The overall downtrend of the past few weeks will definitely bring these risk assets back down,” Doolittle said. “They’re highly correlated, as we all know.”

As he did Friday, trader Stephen Weiss emphasized that the global slowdown would keep oil prices down.

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“If you go back to 2008 — we won’t get there — you saw oil trade down to $40. I think you’re going comfortably into the $80s, maybe into the $70s,” he said. “Everything’s slowing down.

“I’ve sold my stocks. I think stay away from all of them except for the ones that have big yields. Conoco , I’d buy that a little lower. I’m not buying here, but there are some values there. When you get yields above 4 percent with the bond market where it is, you’ve got to jump it.”

Trader Steve Grasso said there were opportunities to play the downturn in crude oil prices.

“There is a data point that’s bullish on it because supplies are running below a five-year average when oil’s concerned,” he said. “You want to be looking at your service names, Halliburton and BHI.”

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Trader disclosure: On Nov. 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Weiss owns NFLX puts; Weiss owns HPQ; Weiss owns RIMM; Weiss owns SDS; Weiss owns UGL; Weiss is short CAT; Weiss is short FLR; Weiss is short JEC; Weiss is short EUR; Weiss is short QCOM; Najarian pending; Grasso owns AKS; Grasso owns AMR; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU;

Abigail Doolittle
Pending

Brian Marshall
No disclosures

Deborah Weinswig
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of JC Penney Co Inc, Saks Inc, SUPERVALU INC. This position reflects information available as of the prior business day.

Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of Dollar General Corp., Target Corp, Wal-Mart Stores Inc.

Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from Dollar General Corp., Kroger Co, Target Corp, Wal-Mart Stores Inc.

Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from Kroger Co.

Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from CVS Caremark Corp, Dollar General Corp., JC Penney Co Inc, Kohl's Corp, Kroger Co, Macys Inc, Safeway Inc, SUPERVALU INC, Target Corp, Walgreen Co, Wal-Mart Stores Inc, Costco Wholesale Corp in the past 12 months.

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): Dollar General Corp., Kroger Co, Target Corp, Wal-Mart Stores Inc.

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: CVS Caremark Corp, Dollar General Corp., JC Penney Co Inc, Kohl's Corp, Kroger Co, Macys Inc, Safeway Inc, Saks Inc, SUPERVALU INC, Target Corp, Walgreen Co, Wal-Mart Stores Inc, Costco Wholesale Corp.

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: CVS Caremark Corp, Dollar General Corp., JC Penney Co Inc, Kohl's Corp, Kroger Co, Macys Inc, Safeway Inc, SUPERVALU INC, Target Corp, Walgreen Co, Wal-Mart Stores Inc, Costco Wholesale Corp.

Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from Dollar General Corp..

Analysts' compensation is determined based upon activities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates ("the Firm"). Like all Firm employees, analysts receive compensation that is impacted by overall firm profitability which includes investment banking revenues.

The Firm is a market maker in the publicly traded equity securities of CVS Caremark Corp, Macys Inc, Costco Wholesale Corp.

Matthew Czepliewicz
No disclosures

Kulbinder Garcha
The analyst(s) responsible for preparing this (RIMM) research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.

The analyst(s) responsible for preparing this (AAPL) research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.

The analyst(s) responsible for preparing this (HPQ) research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.

JON NAJARIAN
Pending

CNBC.com with wires.

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