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.
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.
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.