Expert: Crude may fall as low as $80

Crude oil may tumble to $80 a barrel within 12 months as supplies of alternative energy increase, while grain prices may climb on emerging-market demand, said Renee Haugerud, whose hedge fund gained 18 percent this year.

The surge in oil has been "overdone" by investors seeking holdings in raw materials through the Standard & Poor's GSCI Index, a commodity gauge weighted toward energy, she said. Industrial metals also rose too high, she said.

"They were the sexy commodities," Haugerud, founder of the $2.5 billion commodities hedge-fund firm Galtere Ltd, said in an interview in her New York office. "Everyone wanted to get long an asset class via the GSCI, and let's face it, the GSCI is crude."