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Oil Prices Hit 7-Month Low

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    GRZ Energy President Anthony Grisanti on the outlook for oil prices.

  • Duration 2:23
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Energy one of today's worst performing sectors.

Some people don't -- this at all because the price of oil actually hit a seven month low.

Closing below ninety dollars in the regular session for the first time since October.

We're bringing in a top oil trader who is warning of an even steeper drop joining me now Anthony present -- he's president of GRC energy.

You're on the -- today at the nymex what was it like.

You know -- it was pretty orderly we've been expecting this drop because a lot of things didn't happen that we expected to over the last few months number one demand for gasoline never picked up.

Number two is you didn't have the problems in the Middle East that we thought we are gonna have -- a lot of this the oil price of oil was based off of what was going on and I ran and things like that when they signed that agreement yesterday -- the traders looked at each other and said.

I think we're safer now we can probably short this thing.

Yes he wouldn't get this horrific headline out of Iran but you also got inventory numbers where he saw bigger than expected build in inventories.

For crude oil and suddenly that brings down the price 'cause there's more supply but.

It was ever thus -- had record high supply right now.

And a lot of that is due to what we -- expected to see is a reversal of the direction of the Seaway pipeline talk about that.

-- that's absolutely right the Seaway pipeline used to take oil from the Gulf of Mexico and bring it up to Cushing Oklahoma.

Where the WTI contract at west Texas contract.

Is delivered.

-- what was happening with refined in -- are absolutely refining Cushing and areas around Cushing and -- -- now with with what's going on North Dakota with you oil what's going on in in.

Canada with you while a lot of that's coming from the north area and bring it down into Cushing.

Which cause that's apply to be like that so some of these traders looked at this are some of the people in power look at this and said we should reverse that pipeline and now -- pipeline is gonna take the oil out of Cushing Oklahoma.

Bring it back to headed down to the gulf put it in pipelines -- to bring it up to the northeast.

In other places -- happy then bullish for prices -- we start to see prices go back up absolutely it will be it it won't happen overnight because what we're talking about is a 150000.

Barrels a day right now towards the end of the year.

It's gonna be 400000 barrels a day and you'll see a slow draw down of the supplies.

In -- again in -- -- oil a lot more valuable viable.

A lot more -- for the refineries that we see 85 before we see 95 I.

85 dollars and that is back up from there.

Anthony great to see you with the haul them off the floor so we can put -- -- and we appreciate it thank you very much equity percent -- to.

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