The catalyst that could push crude oil to $60 this week

Crude oil prices were under pressure on Tuesday, falling 3 percent on rising U.S. output forecasts and global demand concerns.

Investors were also looking ahead to crude oil options expiration on Wednesday, which could prove to be a near-term bullish catalyst for the commodity that's seen a bounce over the last month, according to Bill Baruch of Blue Line Futures. Here's why.

• December is the most actively traded contract for WTI crude, Baruch said Tuesday on CNBC's "Trading Nation." Since December became the front-month contract, the commodity rallied by over 10 percent.

• "As prices rose, so did the appetite for call options as investors feared missing the move higher. The market was due for a pullback into options expiration," he added.

• "I'm telling clients to look for the market to stabilize for key support at $55. At this level, we want to look to buy, to go long," Baruch said.

• Crude oil, which settled lower on Tuesday at $55.70 per barrel, is set to retest $58 and hit $60, he said, particularly as the commodity's futures contract expires early next week.

Bottom line: As the crude oil options contract is set to expire on Wednesday, prices could see a boost, and Baruch sees oil headed to $60.

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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