Oil has climbed above $37 a barrel on Tuesday, but is still down 30 percent year-to-date. Steve Auth, chief investment officer of equities at Federated Investors, tells CNBC's"Power Lunch" crude could retest its lows.
"Oil could hit the low $30s. By the middle of next year, we will start to see oil bottom out," Auth said.
He believes it is too early to get into energy. "Oil could get into the $40-$60 range the second-half of next year, but near-term, oil is headed lower," Auth said.