NEW YORK (TheStreet) -- Shares of Continental Resources (CLR) were lower in late morning trading on Thursday. The stock surged on Wednesday after OPEC agreed to a global production cut of 1 million barrels per day to help offset the global oil glut.
Continental Resources CEO Harold Hamm joined CNBC's "Squawk on the Street" on Thursday morning to discuss his thoughts on the deal.
While a number of analysts predicted the deal wouldn't be completed, Hamm said he wasn't surprised that the cartel worked it out at the meeting. "I've been predicting that it would happen. And I predicted that it would happen about the time that we saw equilibrium occur between supply and demand -- and certainly that happened," he explained.
The agreement is "wise" and needed to happen, he said. The slashed production levels will benefit both the consumer and producer in the longer term, he argued.
About two-and-a-half years ago, OPEC members began to flood the market with oil with the intention to "put a lot of us out of business," Hamm claimed. The cartel's plan didn't work, Hamm said, because his company has increased in efficiency. "We're twice as efficient with our dollars today at Continental as we were in 2014," he said.
Hamm applauds OPEC for "coming to the table" with this deal and thinks oil now has "quite a bit of running room" and could hit $60 by year-end. That may seem high, but OPEC was holding oil to an "artificially low price from where it should be today" in the last few weeks, Hamm said, as a way to "punish" members to make them agree to the deal.