Oil traders should expect prices to pullback by at least 15 percent over the coming months, according to a senior analyst at Commerzbank.
Oil prices rose to their highest levels since mid-2015 on Wednesday amid political unrest in Iran, despite analysts saying there was little risk of supply disruption from OPEC's third largest producer. And while long positions have skyrocketed, short positions — or bets that prices will fall — have dipped to their lowest levels since February in recent weeks.
The oil price rally is "definitely due to massive overheating of the speculators and is likely to correct over the next month," Eugen Weinberg, head of commodities research at Commerzbank, told CNBC on Friday.
"(I expect) the price of oil to correct by at least 10 to 15 percent over the coming months because the current fundamentals are not justifying this kind of strength," Weinberg said.
Oil prices retreated from their highest level in 2.5 years on Friday as surging U.S. production appeared to offset supply fears stoked by anti-government rallies in Tehran. Brent crude traded at $67.38 a barrel at around 12 p.m. London time (7 a.m. ET), down 1 percent, while U.S. crude was seen at $61.41, down 0.9 percent.