If you’re looking for oil to sit at current levels, one of the most esteemed oil traders in the world thinks you’re about to be sorely disappointed.
According to Mark Fisher of MBF, oil doesn’t belong at $83 and won’t remain at this level for long. “Either it goes back to $100 or it drops to $65 – but we’re not staying here,” he says.
“I think ultimately we’re going up,” Fisher adds, "that’s my gut, but when I get a gut feeling I’m either really right or really wrong.”
Fisher’s gut feelings as well as his commentary is widely followed by pro traders because he’s built one of the largest and most successful clearing firms and proprietary trading shops on the Street.
And of all the catalysts driving oil, Fisher also tells us his guys says, it’s not the stronger dollar or the China slowdown behind the move. Instead, he believes the decline in oil is largely being orchestrated by Saudi Arabia.
“They’re trying to put the screws to Iran,” he says. (It's believed that Iran is suffering due to falling oil revenues.) And Saudi Arabia's oil minister seemed to imply in the near-term his nation has no plans to decrease production; he said Saudi Arabia is committed to keeping markets 'amply supplied.'