This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dicker: What's Driving Rising Oil Prices

NEW YORK ( TheStreet) -- I was talking this morning with Jim Cramer about the rising U.S. crude price and which stocks might benefit from it.

It's critical to understand the rising price of WTI crude is not being driven by a single fundamental reason but many. First, there is the comparatively better outlook for the U.S. economy particularly in contrast to Europe, where their Brent oil benchmark has remained fairly flat priced at around $109 a barrel.

But also, it is about the better infrastructure that is beginning to have a more concrete effect in removing the enormous surplus of crude that has built up over the last two years in Cushing, Okla., and on the Gulf Coast.

So, much of the U.S. crude rally is more about the ability for WTI crude prices to "catch up" to more universal global prices, still more than $14 higher priced. For U.S. crude to again touch the $100/barrel barrier again, we'd need no more than a $2 rise in global crude prices combined with a $2 tightening in the differential between our WTI and European Brent prices.

I believe it's going to happen. And there are some very specific stocks you should be looking at to take advantage of that trend.

I discuss these stocks and more with Jim in the video above.

At the time of publication the author had positions in APC and HK.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Dan Dicker has been a floor trader at the New York Mercantile Exchange with more than 25 years of oil trading experience. He is a licensed commodities trade adviser.

Dan is currently President of MercBloc LLC, a wealth management firm and is the author of "Oil's Endless Bid," published in March of 2011 by John Wiley and Sons.

Dan Dicker has appeared as an energy analyst since 2002 with all the major financial news networks. He has lent his expertise in hundreds of live radio and television broadcasts on CNBC, Bloomberg US and UK and CNNfn.

Dan obtained a bachelor of arts degree from the State University of New York at Stony Brook in 1982.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.48 -0.23%
FB $101.59 -0.31%
GOOG $682.06 -0.15%
TSLA $147.99 -1.60%
YHOO $26.80 0.15%


Chart of I:DJI
DOW 15,881.79 +221.61 1.42%
S&P 500 1,854.11 +25.03 1.37%
NASDAQ 4,309.5150 +42.6780 1.00%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs