Oil will probably hit $100 a barrel, thanks to economic recovery and shrinking supply from refineries, says John Kilduff, co-chief investment officer of Round Earth Capital.
Oil is now trading at just above $80.
"The move back above $80 will be before us in the next several days, and we're going to continue higher,” Kilduff told CNBC.
“I think we're going to see $100 a barrel for crude oil here at some point during even the first half of the year.”
As for demand, "There are signs out there that the global economy is picking up, and that speaks to increasing energy demand," he said.
Kilduff says supply is limited around the world, especially in terms of refining capacity.
“We have a U.S. refining industry that’s running at only 80 percent of capacity,” he said.
“We’re vulnerable to any shortages.”
The move obviously won’t be positive for the economy, but fortunately it will just be temporary, Kilduff says.
“It will probably coincide with the peak summer gasoline demand here in the United States." People tend to drive more during the summer, as they take vacation trips.
Kilduff isn’t the only oil bull. Goldman Sachs analysts see crude rising to a new trading range between $85 and $95, thanks to supply disruptions in the North Sea and Venezuela and the recent strike at a Total refinery, according to OilPrice.com.
© 2017 Newsmax Finance. All rights reserved.