Kilduff: You Ain't Seen Nothing Yet with Oil

With an OPEC production cut unlikely and global weakness abounding, oil is nowhere near a bottom, says John Kilduff of Again Capital.

JOHN KILDUFF: I don't believe any of [the OPEC hype about cutting crude production]. There's gotta be more wreckage globally [for OPEC to act]. We're starting to see some wreckage. We're starting to see the dividend cuts and other other cutbacks. But I think an real implosion in the U.S. shale industry would help. I don't think you've seen nothing yet.

The oil production fall that we saw from last year has plateaued at 9.2 million barrels for the past five months now even with the plunging rig count. And today it turns out the Oklahoma folks were underreporting to the tune of about one hundred thousand barrels.

My target is $18 because I think that is the level where pain should be sufficiently inflicted where you will see real production cuts and damage to the oil sector.