Although crude oil futures rebounded Thursday, one top trader thinks the oil rally could be temporary.
U.S. light, sweet crude futures settled at $97.78 a barrel, rising $2.04, or 2.1 percent, the highest for a front-month contract since July 26. U.S. crude had retreated on Wednesday after gaining in five straight sessions.
Looking at the $18 rally in sweet crude, though, Dan Dicker of MercBloc noted $12 of that rally has been due to the tightening in the Brent, WTI spread. Brent itself has really only gone from $108 to $113 a barrel – just a $5 move – and Brent, not U.S. light, sweet crude, is the price that affects global oil prices, he said.
With Brent trading at roughly $113 a barrel, though, he thinks there is value in the exploration and production companies that have international exposure.
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CNBC.com with wires.