Oil hit a 1-year high on Monday, driven by bullish sentiment across the financial markets. John Kilduff, vice president and co-head of MF Global, as well as a CNBC contributor, discussed the future of oil prices.
“We’ll see $80 very shortly—we’ll be at $79 when the new front-month contract comes into play next week,” Kilduff told CNBC.
Kilduff said China plays a big role in the oil price increase.
“Their GDP is 7 percent and they sold over a million cars last month for the first time,” he said. “It’s a big part of the structural issue that we face.”
Kilduff added that the commodity markets priced in a “resource crisis” last July an “economic Armageddon” in December, of which neither occurred.
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“So between $30 and $150, where’s fair value? I think it’s closer to $100 than it is any other number,” he said.
"The budget deficit number that came out on Friday will further weaken the dollar and underpin the commodity prices,” Kilduff added.
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No immediate information was available for Kilduff or his firm.