U.S. crude is on a path to $42 a barrel as speculators give up their efforts to drive the commodity higher, according to John Kilduff, founding partner at energy hedge fund Again Capital.
Kilduff, a longtime bear and skeptic of OPEC's deal to curb production, said oil's more than 5 percent plunge to roughly three-month lows on Wednesday was the final nail in the coffin for speculators. The high trading volume indicates they are selling out of their bullish positions, he said.
"It's confirmatory to me that they've thrown in the towel and we're in the process of a pretty big long liquidation at the moment that should carry us all the way down, I think, to the November lows of $42. We'll retrace the entirety of the rally from November to just recently," he told CNBC's "Fast Money: Halftime Report" on Thursday.
Oil tumbled from a high of $52.92 to a low of $50.05 on Wednesday after the Energy Information Administration reported a ninth straight weekly rise in U.S. crude stockpiles. It continued its slide Thursday, touching an intraday bottom of $48.67.
Kilduff sees U.S. crude hitting $42 by the end of April, and said it could dip below $40.