Oil could hit low $50s early next year: Kilduff
Oil prices will continue a "steady grind lower" and could hit the low $50s early next year, energy expert John Kilduff told CNBC Tuesday.
"All the elements remain in place that got us here. More supply, not less and less demand, not more," Kilduff, founder of Again Capital and a CNBC contributor, said in an interview with " Closing Bell ."
"It's the perfect commodity combination for this thing to stair step lower and lower and lower. Throw in a rising dollar and you've got almost the perfect storm here."
U.S. crude settled down 3.1 percent at $66.88 per barrel on Tuesday after jumping more than 4 percent on Monday. Brent was last down about 2 percent, under $71, after gaining 3.4 percent.
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Both Brent and U.S. crude touched five-year lows on Monday, with Brent dipping to $67.53 a barrel and WTI touching $63.72, before recovering to settle up on the day.
So what are market pros watching for as prices continue to drop? According to Kilduff, "$59.80 is the next stop on the chart and then I do believe we will solidly in the low $50s during first quarter of next year and possibly lower."
While low prices aren't good for oil companies and stocks, it is "unambiguously good" for the economy, he said.
"Ours is a consumer economy," Kilduff noted. "This is putting money in their pockets."
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Other beneficiaries include manufacturing economies like China and India, he added.
"They're going to have much lower input costs."
-Reuters contributed to this report.
