×

Don't get nervous about rig count, oil is going higher: Trader

The uptick in the U.S. oil rig count isn't anything to be nervous about, trader Jeffrey Grossman said Friday.

Instead, he thinks it shows the industry is a little more confident that the market is stabilizing and is on its way higher.

"It shows that people are going to get into the game and really get involved here at these levels," the president of BRG Brokerage said in an interview with CNBC's "Power Lunch."

"I'm a little surprised. It's a little early here, but it shows a trend that is going to be taking place in the next month or so."

The number of U.S. oil drilling rigs rose by three to 328 this week, oilfield services firm Baker Hughes reported Friday. It was the second straight week of gains. However, the count is still down 307 from this time last year.

Oil prices fell more than 2 percent on the news.

Brent crude oil futures dropped $1.18, or 2.3 percent, to $50.77 per barrel shortly after the rig announcement. U.S. West Texas Intermediate futures were down $1.25, or 2.5 percent, at $49.31 a barrel.

Grossman, however, believes crude prices are going to continue to drift higher. He predicts they could hit the mid-$50s or perhaps approach $60 by the end of the year.

—Reuters contributed to this report.