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Oil heading below $30. Here's why: Expert

Despite a rally Wednesday, crude oil prices could restart their downward spiral if supplies in storage continue to grow, one market watcher contended.

U.S. crude futures settled nearly 4 percent higher Wednesday at $37.50 a barrel as inventories fell by a more than expected 5.9 million barrels. But stocks at the Cushing, Oklahoma, delivery hub rose by 2 million barrels.

If inventories continue to accumulate at the Cushing facility, prices could slip through the low-30s, said Joe Cusick, vice president of wealth and asset management at MoneyBlock.

"We could even get into the mid-20s and it could happen pretty quickly," he said on CNBC's "Power Lunch."

Pipelines and oil storage tanks in Cushing, Okla.
Justin Solomon | CNBC
Pipelines and oil storage tanks in Cushing, Okla.

Edward Jones analyst Brian Youngberg hesitated to give a specific price prediction, but he contended that crude prices would rise into next year due to "continued reductions in supply."

"We think we'll see demand begin to pick up a bit as the global economy hopefully improves here," he said on CNBC's "Closing Bell."

He sees upside for multiple firms next year. He specifically likes Chevron, contending that its dividend looks "safe."

Youngberg's other top picks include Total, Schlumberger and EOG Resources.