On Friday, U.S. Brent crude hit a fresh 12-year low as fears that the lifting of Iranian sanctions could flood an already oversupplied market for crude.
In spite of the sell-off, the man who correctly saw the steep market correction in August told CNBC that investors would be smart to buy oil at these levels — and short the stock market.
"Markets estimate the probability of a spike in oil, and a bear market at about 3 percent," JPMorgan's Marko Kolanovic, told the "Fast Money" last week. "But we think it's actually much higher."
Kolanovic's theory comes from looking at past instances of when crude has dramatically underperformed the equities market, as it is on Friday. In each of the 10 instances in the last 30 years this happened, oil eventually came back with a vengeance.
By the end of the year, the Global Head of Derivative and Quantitative strategy says $45-$50 oil is fully reasonable to expect while "the doubling of oil prices to $60 is actually quite possible."