Crude oil oversupply concerns still exist, but generational buying opportunities exist for long-term, buy-and-hold investors in the energy sector. Dan Dicker, Senior Energy Analyst at TheStreet, tells Jill Malandrino that the investment community is seeing it wrong, and while the supply glut exists and continues to grow, you want to be ahead of the trade. There was a buildup of supply for about eight months to a year before crude oil prices began to react in the fourth quarter of 2014 and Dicker says the same thing is happening right now in terms of market reaction. Production is down 300,000 barrels per day in the U.S. and the EIA (Energy Information Administration) expects a 500,000 drop in production for 2016. Iraq is saying that it is not does have cap-ex to make production numbers. In addition, stripper wells are shutting down by the hundreds and production is coming off in several areas around the globe. All of these small indications point to a supply roll off over the next quarter or two, and Dicker says now is the time to position yourself in energy stocks.
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