Oil costs have “dropped like a rock” over the previous seven weeks however are lastly approaching a backside, Wells Fargo strategist Scott Wren informed CNBC on Friday.

“It is caught the falling knife,” the senior international fairness strategist at Wells Fargo Funding Institute stated in a “Squawk on the Avenue” interview. Nonetheless, “from our perspective oil, whereas it is exhausting to say proper now precisely the place the underside goes to be, we really feel it is fairly near the place we’re proper now.”

Oil costs fell Friday to their lowest ranges in additional than a yr.

West Texas Intermediate crude fell $3.41, or 6.2 %, to $51.22 in gentle buying and selling after the Thanksgiving vacation. WTI briefly slid about 7 % to its weakest costs since Oct. 12, 2017. Worldwide benchmark Brent crude was round $59.52 a barrel, down $3.08, or 4.9 %

The sell-off in crude comes amid escalating considerations about a rise in international provide and a slowdown in financial progress. OPEC and non-OPEC members assembly in Vienna on Dec. 6 are anticipated to begin curbing output.

Wren additionally stated the most recent wave of power market promoting has added to fears within the broader market of a slowdown in financial progress.

Wren has beforehand stated two issues will decide the market motion by the top of the yr: If there may be “any whiff” of something constructive on U.S.-China commerce and Federal Reserve Chair Jerome Powell’s determination on rates of interest.

“We all know progress is respectable right here within the U.S.,” he stated. “However clearly the market is afraid and [oil is] including to fears already that the worldwide financial system goes to be slowing down.”

–CNBC’s Tom DiChristopher contributed to this report

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