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$26 oil may not be 2016 low: Kilduff

Matthew J. Belvedere

The low of the year for U.S. crude prices may not be in yet, oil expert John Kilduff said Wednesday.

On CNBC's "Squawk Box," he said Sunday's meeting in Qatar of OPEC and non-OPEC producers on a possible output freeze was "one big joke" because of all the conflicting commentary from the various oil ministers.

"This is going to be the mother of all 'buy the rumor sell the news' events here on Sunday. I think there's no way they come across with any kind of a deal or sufficient rhetoric to satisfy this rally right now," Kilduff said. "I think there will be a pullback starting next week."

West Texas Intermediate crude (New York Mercantile Exchange: @CL.1), the American benchmark, bottomed on Feb. 11 at $26.05 per barrel. Since then, WTI has soared more than 50 percent — nearly 4.5 percent on Tuesday alone.

The pieces are in place for oil to take another downturn, Kilduff said, citing concerns about the global economic growth and massive glut.

Kilduff pointed to last week's International Monetary Fund downgrade of its world growth forecast.

On the oversupply side, "we're still overproducing about a million barrels a day more than we need. And I think this is going to dawn on this market," said Kilduff, founding partner of Again Capital, an alternative investment manager specializing energy and metals.

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