×

Todd Colvin: Making an oil call? Wait for this

As investors in the energy space try to guess where oil prices will end, Ambrosino Brothers' Todd Colvin said Tuesday they should wait until the Federal Reserve makes a decision on raising interest rates.

"Oil price volatility has been on the rise, but oil's going to trade like everything else and it's going to follow the central banks," the firm's senior vice president said in a CNBC "Power Lunch" interview.

U.S. crude settled down 11 cents on Tuesday at $45.94 a barrel but has dipped below $40 a barrel in the last month.

US oil prices in the last month

"The risk takers are long on oil, so you're going to see a bias, and if we do start to leak lower, there will be an exodus trade that may push us down to that 20 handle … but I don't think that trade is anywhere close until the Fed decides what they're going to do," Colvin added.

Still, Raymond James' Pavel Molchanov said in another "Power Lunch" interview he has a more bullish view on oil prices.

"We're looking for $45 a barrel on WTI for the fourth quarter and ramping gradually toward $55 as an average for 2016," Molchanov said.

"By the end of 2016, we think oil will be well into the $60s [but] the trajectory to getting there is going to be choppy."