Oil prices likely to dip, but that may not last long, analyst says

Oil prices likely lower as inventories build

Although OPEC is pumping record amounts of crude oil, an expected new dip in prices may not last long, energy analyst Matt Smith told CNBC on Wednesday.

The director of commodity research at ClipperData predicted a price drop following Tuesday's American Petroleum Institute report that indicated a build in inventory.

That build is likely to be mirrored in more comprehensive data coming Wednesday from the Energy Information Administration.

But Smith said other factors could spark market volatility.

With Saudi Arabia, Iran, Iraq, Libya and Nigeria all "pumping, pumping, pumping," Smith told "Squawk Box" that the market is under stress and "still out of wack."

He said stability in lower crude prices hinges on the OPEC meeting on Nov. 30, where a change of tone may spur a boost in prices.

"We are likely to get some sort of positive rhetoric out of the group. Saudi is trying to push for some sort of agreement, and should we get that, we should see a bit of a bump in prices," Smith said.

He said expectations for an OPEC agreement are so low that the pressure is on Saudi energy officials to spur some decision-making.

Still, Smith said there's still an oversupply, and that keep prices in the $40 to $50 range for the time being.

West Texas Intermediate crude was down 64 cents, or 1.37 percent, on Wednesday morning, trading at $46.03. Brent crude was down 58 cents, or 1.20 percent, at $47.56.