Oil may be soaring Thursday, with U.S. crude up 6.3 percent at $51.48 a barrel. But John Kilduff, founding partner of Again Capital, doesn't think the rally will last.
"I still believe we're going to go to that $30 to $33 area, which is the low point from the financial crisis in 2008, 2009," he told
CNBC.
"What you saw over the past several days was technical in nature, a short squeeze. This volatility is a little crazy, and I think that $30 is a downside target for technicians that are in this market."
Oil soared Friday, Monday and Tuesday before plunging Wednesday on news that U.S. oil inventories have risen to their highest point in at least 32 years.
U.S. crude remains 52 percent below late June levels after hitting a 5 ½-year low last month.
While news emerged Friday that oil companies shut down 90 rigs in the previous week, that just represents a jettison of "the runts of the litter," Kilduff said.
"I don't think it's [oil prices] going to go back up any time soon."
Meanwhile, 40 percent of the 53,041 planned job cuts announced in January were related to oil prices, according to
Challenger, Gray & Christmas' monthly job cut report.
"We may see oil-related job cuts extend well beyond those industries directly involved with exploration and extraction," John Challenger, CEO of Challenger, Gray, said in a statement.
"The economies throughout the northern United States that have been thriving as a result of the oil boom could experience a steep decline in employment across all sectors."
To be sure, some industries throughout the country will benefit from falling energy prices, Challenger noted. Airlines, trucking companies, plastics manufacturers and paint makers already are benefiting.
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