so we brought in john kilduff. he joins us to talk about the oil market and what it means to you.ising partner at again capital. >> good evening, sue. >> let's start with libya and that it is having on oil prices right now. >> it's sort of the icing ond ake for consumers at this point. >> basically, we've had warring faions in libyaor a year since moammar gadhafi, the former dictator was rown and ultimately killed. there is a consolidation of power goi there is a general by e name of kaftar that has controlled the eastern part of libya and the oil i forming there. he is making a move to consolidate the rest of the b country and ttle for tripoli, the capital is on so to speak. i'm getting the s that he'll prevail and that the situation will revert to the way it was when moammar gadhafi was there, a sort of heavy hand force on an otherwise tribally organized country. >> right. >> which i good news fo consumers because the oil will flow. >> it is not flowing for other parts of the country, of the and the whole situation is really exacerbated by the fact that we've had some re issues

morning said it believes the worse is over for the industry joining me to talk more on this is john kilduff and mike kelly welcome to you both. michael, i'll start with you because halliburton's commentary was interesting but it's not clear investors take them at face value they seem to not be convinced at the levels does the sanction level change that >> i think it's a big deal we're already in a market that we're really undersupplied the global market for oil is about $100 billion a day market. if you're going to take that off the market, that's a big deal. we'll iend v to find out that. >> and why is it that we're so tight in terms of the supply picture when we've talked so much about how the u.s. has caught up and contributing in a big way to the oil supply picture zm. >> saudi arabia. they've worked hard to cut back to reduce supplies them, the russians, uae. and it's worked. they've also had help from the implosion of venezuela and the fragile producers like nigeria and libya in focus >> why do you think the administration has acted now when they push the gasoline price lower? he know

joining is on the squawk news line, john kilduff of again capital.tober of 2018. how high do you think oil goes but embedded in that question is whether or not you believe actually cutting off oil leaving iran will have enough impact on the markets or if there is enough of a black market to sort of get around that >> it is doubtful the exports will go to zero. there is some active black market activity out there, but they're going to have a hard time with that, melissa. legitimate companies, even the big refiners in china, they're not going to risk the sanctions implications from the u.s., but there will be others that will certainly try to buy some. i think the indians will be particularly willing to buy. at this point, this whole thing, the market reaction you're seeing right now is because we are in a tight situation supplywise because of the efforts of saudi arabia over the past several months. it's going to turn on them if the saudis have it within their power and have the wherewithal to fill this gap to the extent they're reluctant yapt or they

. >> ultimately -- >>> and joining us now to talk about exxon's earnings, john kilduff, capital foundingwn on this, since you've had 2 1/2 minutes to think about it. actually, 3 1/2. so, it should be good, john. what do you think? >> absolutely, joe what makes it especially disappointing was that the ceo was just on wall street, a couple of months ago now, at the investor day -- >> not even, less -- >> talking it up right, becky you had that great interview with him there's no real reason for this. we'll have to see. i don't honestly know how they could have missed so badly here. i'll tell you this, exxonmobil has been a disappointment on earnings day for the past, i'm going to say year and a half, guy, right >> mm-hmm. >> they used to be the yankees you used to be able to take them to the bank and just buy this stock and forget it. it has rebounded massively off its lows from december with the rest of the market, and it has actually gotten a little bit expensive here at about 16 times earnings, in my view. >> darren woods, chairman and chief executive officer, says that "the solid opera

announcements, but we want to understand this little bit better so right now on the squawk news line, john kilduffcnbc contributor, is with us i want to talk about the strategic rationale of the deal and whether or not you like it, but first can you explain how the stocks have moved this morning? >> well, a typical premium, obviously, for the acquired shares and a bit of a ding for the acquirer i think the markets are looking at a price environment for crude oil, andrew, that's, you know, mediocre you look at them, the forward curve all the way up to 2028 on the nymex price board futures. they're trading around $53 a barrel so i wouldn't say we're in a very high-price oil environment. nor, though, are we in a super low one. we're really in the middle ground, and i think it's sort of an area where, you know, the deals are going to get done. and i think that there's probably some question out there as to whether or not some of these really remarkable data points that have been put up by chevron about this in terms of it being, for example, free cash flow after just a single year here after what they