Europe Economy

Oil Price 'Off the Charts': Schork

The price of oil is too high for fundamentals but a lower price would depend on a rally in the US dollar, Stephen Schork, editor of the Schork Report told CNBC Wednesday.

"We're absolutely off the charts at this point," Schork told "Squawk Box."

There are two different markets in the US, one is made up of the consumers and the other is "Wall Street's version" of the commodities markets, he said.

"If we go by the consumer, the market is topped out; we're not going any higher now," Schork said, adding that prices would be closer to $50-$40 if only demand were taken into account.

"Maybe we are seeing better (economic) numbers but at the end of the day, we are still defaulting on our mortgages, we are still defaulting on our credit cards…the demand just isn't there at this high," he said, adding that the OPEC meeting next week is unlikely to bring any significant change to the market.

Over the past 5 years there has been a negative correlation between oil prices and the dollar's exchange rate, a reverse from the previous 5 years, according to Schork.

"At this point what we need to see is a rally in the dollar. But if the dollar continues to weaken, there's nothing to do, oil prices will go higher," he said.