Oil Going Back To $25, Again Capital Warns

Speaking on CNBC's Markets Now, John Kilduff of Again Capital said he doesn't believe the current rally in crude oil can hold and he thinks that it is probably going to test $25 again. Kilduff explained that crude oil rallied on the speculation about a possible production cuts by OPEC countries, but also because China didn't devalue its currency. He is skeptical about production cuts and he sees the whole situation as a buy-the-rumor, sell-the-news phenomenon. Kilduff believes there aren't going to be any production cuts because Saudi Oil Minister Ali Al-Naimi said recently he doesn't trust his counterparts. Iran is another bearish factor, because they're not going to slow down their production until they get to the pre-sanctions levels, explained Kilduff.