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Oil will bottom at $75, trader predicts

U.S. crude closed higher Friday at $82.75, but was still down about 3 percent on the week and 20 percent over the last three months thanks to oversupply and the strong dollar.

That downward slide will likely continue until oil hits $75 a barrel, one trader told CNBC.

"It's going to form a bottom there and then probably start to inch its way back up," Bob Iaccino, chief market strategist at Tethys Partners said in an interview with "Power Lunch."

Oil
Lucy Nicholson | Reuters

On a bright note, he added, every $10 lower in oil that is sustained for a 12-month period translates to an additional 12 basis points for global GDP.

"It's almost a replacement for quantitative easing," Iaccino said.

Read MoreGloves off over oil: Saudi Arabia versus shale

Tamar Essner, an energy analyst with Nasdaq Advisory Services, also sees oil prices trending downward in the near term.

She noted that U.S. oil producers have played a big role in "jacking up" production, accounting for 75 percent of non-OPEC growth over the last four to five years.

"On a fundamental side, the factors are really bearish in terms of prices for crude oil," Essner said in an interview with "Street Signs."

Read MoreHow the US shale boom will be felt around the world

Don't expect Saudi Arabia to come to the rescue by cutting production, John Kingston, director with Platts, added.

"The Saudis, I think, are making clear through their actions, if anyone is waiting for them to do some unilateral support, it is not going to happen," he told "Street Signs."

He thinks there will be a "countercyclical build" in inventories this quarter.

"Usually you draw inventories in the fourth quarter. We're probably going to build it," Kingston said. "This is a very bearish scenario."

Read MoreThis price would kill U.S. oil production growth

As for a break-even price point on U.S. shale oil, both Essner and Kingston said there is a lot of variability.

"Earlier this week, the head of the IEA [International Energy Agency] said that more than 80 percent of U.S. shale is break even below $60. Earlier this week, some regulators in the Bakken said that there are parts of the Bakken that's break even at $28," Essner said.

"The numbers are all over the place," Kingston added.

—CNBC's Jackie DeAngelis and Reuters contributed to this report.