Oil Prices and News

Don't believe oil bump, $18 still coming: Kilduff

Oil could go as low as $18: John Kilduff
Oil could go as low as $18: John Kilduff

With depressed oil prices poised for a second-straight weekly advance, closely followed analyst John Kilduff said Friday the bounce from 12-year lows won't last.

West Texas Intermediate crude was steady early Friday, after gaining nearly 3 percent Thursday on hopes of a deal among OPEC countries and Russia to cut production to tackle the growing supply glut.

"This whole story line about there being a coordinated production cut plan is just rubbish," said Kildfuff, the founding partner of Again Capital, an alternative investment manager specializing in energy and metals.

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Russian Deputy Prime Minister Arkady Dvorkovich on Friday for an output cut agreement, saying Moscow would not intervene to balance the market.

"We take the position that our oil sector is, to a significant extent, private, and is commercially minded. It is not under the direct control of the state. Our market is governed by the decisions of individual companies, and that is how it will continue," Dvorkovich said.

Against this backdrop, Kilduff told CNBC's "Squawk Box" that he still thinks oil goes lower from here, sticking with his recent call for $18 per barrel as the bottom. "We're going to get that low."

"I don't know why there's such negativity in the stock market around this low oil price because it's so great," he said. "I filled up my tank for $25 yesterday."

Kilduff said the consumer benefits from cheap oil and cheap gasoline outweigh the negative affects among oil producing companies and oil-dependent states and localities.

"This is nothing but stimulative and positive for the economy," he said.

— Reuters contributed to this report.