Oil Will Drop to 'Normal Levels': BlackRock's Doll

Oil prices will revert back to “normal levels” once the situation in the Middle Eastcalms down, said Robert Doll, chief equity strategist at BlackRock.

“We’re in the middle of the storm and the $10-plus premium that has been tacked on as a result of the Middle East doesn’t stay,” Doll told CNBC.

Doll said oil prices have gained not as a result of supply disruptions, but because of fear among consumers.

And once prices start heading lower, investors should stick with the cyclical sectors, he advised.

Doll’s picks include Alcoa , Applied Materials and Comcast* .

“These are names that will do well if the premium pulls back in price of oil,” he said.

Scoreacard—What He Said:

  • Doll's Previous Appearance on CNBC (Feb. 14, 2011)

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No immediate information was available for Doll or his firm.

* Comcast is a corporate parent of CNBC.