×

There's been a rush to judgment on oil, expert John Kilduff says

There has been a rush to judgment about the oil market coming into balance, Again Capital Partner John Kilduff said Friday.

While crude futures have risen about 75 percent from their lows in the first quarter, several supply outages that supported higher prices are resolving, he pointed out.

Meanwhile, the U.S. oil rig count rose by 10 this week to 351, posting its fifth straight weekly increase, according to Baker Hughes.

"There seems to be a natural limit on the price, because these companies are scrambling to generate cash. So the first chance they can to make a dollar or two per barrel, they're going to do it," Kilduff said in an interview with CNBC's "Power Lunch."

U.S. crude closed up 0.6 percent in choppy trading Friday, but was down nearly 8 percent for the week. U.S. crude futures settled 27 cents higher at $45.41 a barrel.

While crude is up off its 12-year lows of $27 for Brent and $26 for WTI, the market has gyrated since hitting above $50.

Kilduff anticipates considerable losses ahead for oil, saying a trade back down to the upper $30s is likely at this point.

— CNBC's Stefanie Kratter and Reuters contributed to this report.