Crude prices may have hit new highs for the year Wednesday, but oil expert John Kilduff doesn't expect the rally to continue.
"There's been a spectacular run, no question about it, but I think we're at a point here where it's going to be hard to continue. A lot of headwinds," the founding partner of Again Capital said in an interview with CNBC's "Power Lunch" on Wednesday.
Kilduff, who has been bearish on oil, admitted he was "obviously wrong" in not anticipating the ongoing rally. He has been calling for crude's run to end for the past few months.
On Wednesday, U.S. oil futures settled up 1.7 percent, or 87 cents, to $51.23 a barrel. They hit $51.34, the highest level since July, earlier in the session. Global benchmark rose 2.1 percent, or $1.07, to $52.50 a barrel, after striking a high going back to Oct. 12.
However, one sign that undermines the gains is China's "bad" trade data for May, Kilduff said, because the oil rally needs a strong Asia.
In fact, he believes there are several bearish factors ahead. For one, the Federal Reserve is going to hike interest rates "soon." Once that happens, he expects the dollar to rally, which could drag down oil prices.
Plus, there was a "little nugget" in the weekly inventory report.
"We saw a slight uptick in U.S. domestic production. The shale boys are coming back, especially to the Permian plays," said Kilduff, also a CNBC contributor.
He also doesn't think supply and demand will be balanced until 2017, unlike some who believe the market will balance this year.
That said, there is one big bullish factor for crude prices: the situation in Nigeria, he said. Supply disruptions caused by a string of attacks by a militant group in the country have brought the oil exporter's production to the lowest in 20 years.
— Reuters contributed to this report.