Arthur Gelber, president of Gelber & Associates, told CNBC’s “Morning Call” that oil could drop to about $60 per barrel by Labor Day.
On Wednesday, stocks jumped after oil prices fell on last week’s larger-than-expected build in crude oil inventories. The U.S. Energy Information Administration said oil stockpiles rose by 6.9 million barrels last week; some analysts looked for a draw-down.
Gasoline inventories rose last week by 1.8 million gallons, suggesting some relief at the pump.
“Historically, with a build of this type, we think prices can easily bounce off $70, head down toward the mid-60s,” Gelber told CNBC's Liz Claman. “I don’t see any reason why, by the time we get to Labor Day, oil prices couldn’t be either side of $60.”