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
TheStreet Open House

Dicker and Cramer: Oil Under $100/Barrel Confounds but Won’t Last Long

 

NEW YORK (TheStreet) -- Oil has been under $100 a barrel in the last week, a prospect I did not see as likely. I spoke about this strange discount in the price of oil with Jim Cramer and the opportunities I see in an oil market that is surprisingly "on sale."

I have never seen global oil supplies in as sharp risk as they seem to be today. There is continuing unrest in Ukraine and resultant tensions between Russia and the EU. There is a continuing Syrian conflict. Kurdish oil resources are at risk in Iraq. Libya cannot find a stable government to administer its oil resources in the East of the country. I could go on.

Yet, oil has dropped significantly, going under $100 a barrel for the first time in months.

Read More: Why ConocoPhillips Is the Energy Sector's Best Bargain/a>

This has been accompanied by a significant drop in the oil stocks of U.S. oil exploration and production companies.

But I do not believe that the lower prices in crude oil will last long. I continue to believe that oil will make a higher low for 2014 than it made in 2013, which was higher than in 2012 and so on -- that indicates to me that the bottom on oil is on a few dollars away, if that much.

Read More: Here Is Where Kinder Morgan's Capital Would Do the Most Good

It also means that oil stocks are being put very much on sale, and the opportunity lies in buying these names as they come down in price along with the price of oil. I give out specific targets for buying U.S. E+P stocks like Noble Energy (NBL) , Anadarko Petroleum (APC) and others in my columns on RealMoney.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time. Jim Cramer's charitable trust, Action Alerts PLUS, is long APC.

Follow @dan_dicker

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.


TheStreet Ratings team rates NOBLE ENERGY INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NOBLE ENERGY INC (NBL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. You can view the full analysis from the report here: NBL Ratings Report

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.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs