The rapid fall in U.S. crude oil production in recent weeks could be a sign the market is beginning to correct, Again Capital founding partner John Kilduff said Monday.
All eyes have been on U.S. oilfields as OPEC, led by Saudi Arabia, has opted to maintain production levels and defend market share. In doing so, the group hopes to force North American drillers to make the first output cuts in order to balance an oversupplied market.
The boom in oil production in recent years, and the corresponding oversupply, has largely been driven by the North American shale oil and gas revolution.
Kilduff recently told CNBC oil could fall into the $20s, but said he is now less confident that crude would in fact dip below $30. He put the odds at 40 percent, citing weekly government data that suggest U.S. production has fallen to 9.1 million barrels per day from a recent high of about 9.6 million bpd.
"The U.S. production is coming down faster than even I thought," he told CNBC's "Squawk Box." "I think it's starting to correct already."
Goldman Sachs recently followed Kilduff's call with its own projection that oil prices could fall into the $20s.