Oil prices could fall to the low $40s if they can't hold above the critical $52 level, says John Kilduff of Again Capital.
Oil prices could fall to the low $40s if they can't hold above the critical $52 level, and several factors are raising the risk of that occurring, John Kilduff told CNBC on Thursday.
Despite these triggers, oil is currently having its best start to a year ever since commodity watchers began recording its price data in 1983. The commodity, which slipped by over 2 percent Friday, fell as low as $42.36 amid a marketwide sell-off in December 2018. As for India and Pakistan's nuclear conflict, Kilduff said that"any kind of conflagration in Asia, whether it be limited to India and Pakistan or spread to any degree to the region, would harm the economic activity there and that would only hasten the demand crisis that you could see here for oil prices in the near future."
But all of these global factors are eroding the rally's durability, and if the world's top oil producers don't work together to offset the United States' record crude production, it could spell trouble for prices, the market-watcher warned.
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