Oil Pros Say Time to Buy Oil is Now as Prices Are Heading Towards $51

Tim Seymour, managing partner of Triogem Asset Management and founder of EmergingMoney.com

Another week, another opportunity to speculate on where the oil market is heading for the near-term, and for two experts the heading is towards $51, which causes them to suggest that now is the ideal time for investors to buy.

Ship & Bunker data suggests such gains would add around $40/mt to IFO380 bunkers in the Primary ports, which were priced Monday at an average of $231/mt.

Tim Seymour, managing partner of Triogem Asset Management and founder of EmergingMoney.com, told CNBC that oil at current levels is "a great buy: I think the second half of this year oil stays above $50 on Brent."

Seymour made his remarks as prices jumped over 3 percent on Monday with speculation that the Organization of the Petroleum Exporting Countries (OPEC) will hold a September meeting to once again debate retraining output.

But when asked if OPEC can erase past failures and agree to something substantial, Seymour replied, "I'm not sure they have to: nothing came out of Doha and look what happened to oil prices.

"It's all about what the Saudis want to do; they're more concerned about Chinese market share right now, and Iran is back to pre-sanction levels, so I think there's a lot that has been priced in here."

Seymour added that despite U.S. oil rig counts climbing for the past six weeks, "this is a lagging indicator; again, the market is correcting itself, and I think oil is very interesting as a buy – especially because sentiment last week was about as low as it's been since [the advent of] the lows."

Ari Wald, technical analyst for Oppenheimer, agreed with Seymour's outlook: "The charts do agree: you're really having your most significant buy signal since oil began its decline in June."

Wald went on to explain that the signal is a key reversal of last week, when oil traded below its support at its 200 day moving average, the bears "had all the reasons to really press the sell buttons" but didn't, the bulls returned and the close saw a strong rally: "I think that's marking an exhaustion of selling pressure; I think it's marking a turning point.

"I think oil's setting up for a rally back to the upper end of its range at a $51 resistance."

This outlook is nothing remarkable compared to recent market prognostications, specifically those made recently by Francisco Blanch, the head of global commodities and derivatives research at Bank of America Merrill Lynch, who said trading in the extremely wide ranges of $25 to $90 per barrel is a distinct possibility over the next three or four years.