U.S. crude jumped higher for the third-straight day Tuesday, and the rally has some calling a bottom. However, Citi's Ed Morse told CNBC Tuesday he believes the commodity still has further to go to the downside.
In fact, he thinks the likelihood is "very great" that oil will hit a range in the $30s.
"The world is oversupplied with oil, and we haven't seen the worst of it yet," he said in an interview with "Street Signs."
U.S. inventory numbers are growing at a pace of a million barrels a day, and there's no sign of its slowing down, said Morse, global head of commodities research for Citi. That, in turn, is causing storage space to run low, and oil prices will go down to accommodate finding more expensive storage, he said.
"Overwhelmingly prices are likely to go down before they really go up. This has been a series of head fakes in the market. Nothing is really sustainable on the reasoning on any of these moves upward."