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.

Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.


Trades to Watch

Trader Bios


Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

Read more