A decline in U.S. crude production should reverse the slide in oil, with prices possibly hitting $60 to $65 per barrel by the end of the year, Johnson Rice analyst Ron Mills predicted Thursday.
He noted that the drop in capital has already led to a decline in the number of rigs in operation.
"If we look out over the remainder of the year, based on recent commentary, the capital cuts will get even greater over the remainder of the year," Mills said in an interview with CNBC's "Closing Bell."
Funds in the equity and debt markets have become unavailable to shale producers, he added. Plus, he expects commercial banks to become much more conservative and/or reduce companies' access to capital.
"We'd expect U.S. production to exit the year somewhere below 9 million barrels a day, which should drive [prices higher]," said Mills.