NEW YORK ( TheStreet) -- I was talking today to Joe Deaux about the fast downturn in oil following the potential diplomatic solution in Syria.
It now looks probable for President Obama to avoid action in Syria and even avoid testing the Congress for a vote of approval. The Russian proposal for international control of the Syrian chemical weapons arsenal has been agreed to in principle by the Syrians and has been endorsed by the United Nations.
That leaves the President, finally, with a palatable option that avoids a very likely defeat in the House of Representatives if not in the Senate as well on a vote to approve military action.
Oil responded predictably, shedding more than two and a half dollars on Tuesday.
But I see this as an investment opportunity and this dip is one that needs to be bought. The geopolitical pressures outside of Syria that have buoyed oil for months prior are not going away, and the Saudis are pumping close to the limits of their production potential to make up for the shortfalls in production likely to emerge in Libya, Egypt and Iraq.
Oil stocks of blue-chip domestic exploration and production companies will see a drop on the backs of this slide in oil prices, which will again represent a value that must be bought. I recommend looking at companies like
and buying them on this pullback.
I talk more about oil and these related stocks with Joe in the video above.
At the time of publication the author had a position in EOG.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.