Anthony Grisanti Sees Crude Oil $5 Lower
Speaking on CNBC's Fast Money, Antony Grisanti said that there is a plenty of supply in crude oil right now and geopolitical risks are currently not affecting it.
There is also a problem with demand in both U.S. and China. China's imports were eight percent lower in June and nine percent lower in July. He thinks that if remove geopolitical risks are removed from the equation, crude oil would trade at $85.
Grisanti explained that a seasonal drop in demand in 4Q, slow economic recovery in Europe and huge production in the U.S. will move the price $5 lower in a month.
Traders who prefer ETFs instead of futures and want to follow Grisanti's trade can take a look at ProShares UltraShort DJ-UBS Crude Oil ETF (NYSE: SCO), which fell 0.76 percent Wednesday.
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