However, Christopher said on “Power Lunch” that he is not ready to commit to oil stocks.
“It’s too soon for that. After all, there’s going to be a lot of write-offs that are still in the works that have to happen as a result of the sell-off,” adding that it’ll take additional time for the firm to invest in the sector.
Market watchers are concerned about Iranian oil entering the market soon, and how the current glut will continue to affect crude prices.
The International Energy Agency reported on Tuesday that oil supply continues to exceed demand, placing an “enormous strain” on the the industry’s ability to soak up the excess and putting greater pressure on prices.
Still, Mark Luschini, chief investment strategist at Janney Montgomery, considers that while growing demand is slow, there’s still a growing demand and the market is experiencing a supply shock problem. The strategist thinks that the market is poised to experience “continued supply destruction.”
“A consequence of too-low oil prices [will be] taking out higher production-cost shale [producers],” he said. “That will lead to a supple/demand balance perhaps in the second half of 2016.”