Top Stories
Top Stories
Oil and Gas

Expect $40 oil, U.S. to shut 200 rigs, pro says

Low oil ripple effects

Expect oil to fall to around $40, possibly plummet to $33, and about 200 more rigs to shut down, energy expert John Kilduff told CNBC on Tuesday.

U.S. crude closed down at $47.93 a barrel on Tuesday, the lowest since April 2009.

"Right now, on a long-term chart, I see around $40-$42 as a base. If that gets taken out, we're going back to that 2009 low, that $33 print," Kilduff, founder of Again Capital and a CNBC contributor, said in an interview with "Street Signs."

Getty Images

Read MoreHere's where pros say oil will bottom (Ouch!)

In fact, oil's fast decline surprised Kilduff, who just last month predicted oil to hit the low $50s this quarter.

Kilduff chalked it up to the "one-two" punch of increasing supplies and shaky demand, which he said has essentially become a "syndrome" now.

That's keeping investors out of the oil market at a time when they are typically trying to get exposure to commodities, he noted.

"The Saudis by far and away are going to be the last people standing in this. The implosion is going to be the U.S. frackers, [and] the Canadian guys are going to get ruined," Kilduff said.

Read MoreOil sector faces 'Hunger Games'

He expects the U.S. will "probably lose another 200 more of our own rigs over the course of the next month or two."

The U.S. gas and oil rig count dropped to 1,811 as of Monday, down 29 from the previous week but still up by 60 from a year ago, according to oil services firm Baker Hughes.