- Crude oil prices, off to their strongest start to a year since 2006, could be on the verge of a sharp pullback, says Tom Kloza of the Oil Price Information Service.
- "There's some collateral damage from the stock market right now. I don't believe this is the bloodletting that's due because of the tremendous speculative bubble and the money on the crude oil side," Kloza tells CNBC. "That will come at a later date."
- Kloza foresees an average Brent price of $59/bbl this year and a WTI range of $54 to $56, and he "wouldn't be surprised to see prices move below these numbers when there is some fear among the fickle financial funds that drove prices to exuberant highs," but notes that his projected drop "doesn't compare to some historical declines."
- Lower crude prices typically suggest cheaper prices at the gasoline pumps, but this time Kloza expects "an increasing bubble for gasoline. And we're facing probably the highest second quarter gasoline prices for the American consumer that we've seen since 2014."
- ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, UGA, DTO, USL, DNO, OLO, SZO, OLEM, WTIU, OILK, OILX, WTID, USOI, USOU, USOD, UBRT, DBRT, USAI
- Now read: Shale Oil Myths: 'U.S. Production Is Struggling To Grow'
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