Oil has been enjoying a recent rally, but it very well may have peaked and could be headed lower, analyst John Kilduff said Wednesday.
Crude hit new highs for 2015 on Wednesday before paring gains as investors and traders took profits.
The report that gasoline inventories rose “was the key component to why I think the top might be in,” the founding partner of Again Capital said in an interview with “Closing Bell.”
“I think the downward pressure is going to build.”
He believes the oil market recently rallied, in part, because of seasonal jitters over supplies, strong demand and the response at the pump.
“It was such a steep rally, such a steep uptrend on the chart … that once we break down below it to about even $60 a barrel, we can go a long way very rapidly and get back down at least to the low-$50s,” he added.