NEW YORK (TheStreet) -- The international nuclear deal with Iran is suspected to increase crude oil production from the country, which will likely hit the oil stocks. TheStreet's Jim Cramer breaks down how investors should play the move.
Cramer was quick to suggest that even if Iran production comes back online in a big way, we're only looking at roughly one million barrels per day.
While that might seem like a lot, it's only a fraction of the more than 80 million barrels produced daily across the world.
The increased production will weigh on WTI crude prices Cramer said, but viewed the selloff in oil stocks as a buying opportunity.
More specifically, Cramer suggested Exxon Mobil (XOM) - Get Report for investors looking for a major player in the business, but said he'll likely go with Noble Energy (NBL) - Get Report or National Oilwell Varco (NVO) - Get Report in the Action Alerts PLUS portfolio.
Cramer concluded that oil stocks will probably hold up okay on the deal news, but could decline when the analysts begin to downgrade. That's when he wants to be a buyer.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.