Oil and Gas

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

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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

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."

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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.