2 Oil Pros Discuss The Case For And Against Owning The Commodity

John Kilduff, a partner at Again Capital, has been negative on oil for quite some time and defended his thesis during an appearance on CNBC.

Kilduff said he is still "not constructive" on oil despite the near-$50 per barrel price. He explained that the U.S. dollar is expected to continue rallying as the Federal Reserve "goes into interest rate hike mode." He added that some of the supply disruptions seen in the global oil market are "transitory" while OPEC nations such as Iran, Iraq and Saudi Arabia are set to further ramp up production in the coming weeks.

Related Link: Goldman Sees These 3 Areas Leading The Oil Market Recovery

Matt Sallee of Tortoise Capital Advisors provided the bullish case for oil and suggested that oil is only "starting to gain momentum."

Sallee cited "big production declines" in the US as rig counts with lower by 80 percent year-over-year while international rig counts have also fallen 35 percent. Meanwhile, the U.S. government withdrew 4 million barrels of oil Wednesday, which drove oil prices even higher.

Bottom line, he suggested the world is not producing enough oil to satisfy growing demand and that "we are starting to see that now."

Posted In: CNBCCommoditiesMarketsMediaAgain CapitalJohn KilduffMatt SalleeOiloil pricesTortoise Capital ADvisors
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...