In light of oil selling off further and piercing through the $50 level, Jim Cramer believes now is not the time to step in. With Libya, Iran, Russia and the rest of the oil nations continuing to pump at aggressive levels, and more and more oil coming out of the Gulf of Mexico, this ‘over-supply’ could continue for an extended period, further pressuring prices and subsequently driving energy stocks even lower than their current, depressed levels. Adding to this dynamic is the fact that there is not enough storage to contain all of the oil being pumped out. All in, Jim is not bullish on the energy stocks. Even though there are quality names out there – like Action Alerts PLUS favorite Royal Dutch Shell – they could be driven lower by further price drops in oil.
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