Crude is poised to go lower, said oil expert John Kilduff, whose bearish calls on the commodity have been dead on.
"I don't see this market coming into balance until at least Q1 of 2017, if not later," Kilduff told CNBC's "Worldwide Exchange" on Friday, a day after the International Energy Agency said global oil markets are heading toward a long-awaited equilibrium.
Since the Feb. 11 bottom, West Texas Intermediate crude, the American benchmark, has surged about 70 percent. But WTI is still off more than 50 percent since June 2014 highs of around $114 per barrel.
While the market seems to be in a bullish mode right now, there are three bearish factors being ignored, according to Kilduff, founding partner of Again Capital.
First, he believes the dollar will continue to weigh on oil prices. "I think the currency headwind is going to emerge, there's no way the dollar can stay this low versus some of these major currencies going forward."
Oil is traded in dollars, so when the greenback moves higher it puts the squeeze on foreign buyers.