Crude oil prices in the short-term future will likely hinge on several factors, including the European debt crisis and the situation in Iran, traders said Friday on “Fast Money.”
Crude soared to $103 a barrel earlier this week and dropped to $98 in midday trading.
“We haven’t been talking about Iran when oil is concerned so that’s always the headline risk,” trader Steve Grasso said. “I would expect it to sell off a bit and then rally a bit over the next couple of weeks back toward that $100 mark.”
Such an intense focus on Europe, which experienced turbulence from disappointing bond results in Spain this week, has drawn attention away from the Persian Gulf.
“As soon as you start focusing more on Iran, I think you get that goosebump back up to par,” Grasso said.
The European outlook isn’t good and will have a lasting effect, said trader Stephen Weiss.
(Related Story: Technicals, Euro Debt Fears Driving This Market)
“Europe is going into recession. I think it’ll be in a deep recession,” he said. “That’s going to hit demand, and China’s just going to bump along. ... Oil has a better chance going into the 80s than it does breaking $100.”
Trader Zach Karabell added, "Oil stocks and oil services stocks are clearly in the camp of oil-is-going-to-come-down because they clearly have not reflected the rising price of oil, at least in the current equity action."
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Trader disclosure: On Nov. 18, 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 KO; Weiss owns HPQ; Weiss owns RIMM; Weiss owns EUO; Weiss owns WLP; Karabell owns AAPL; Karabell owns MS; Karabell owns IBM; Grasso owns AKS; Grasso owns AMR; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU
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