Brent crude oil held steady above $60 a barrel on Tuesday after the Commerce Department revised its third quarter GDP estimate to a 5% annual pace from 3.9%. Jeff Grossman, president at BRG Brokerage, says despite volatility amid thin trading volume during a holiday-shortened week, he believes oil prices are due for a rally. He says oil’s gotten too beaten down and from a normal trading dynamic, he believes a fair estimate of where WTI crude should go is around $62 to $64 a barrel. Then, he says if consumption doesn’t increase and production doesn’t decrease, that’s when he can see oil prices falling yet again. For the near term, Grossman believes we have seen a bottom in oil.
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