The price of U.S. crude rising about three percent after U.S. drillers cut the number of rigs in operation for the third straight week.
That reduction was a response to crude halving in value over the last year as global production soared and demand slowed.
Oil has risen more than 20 percent since its recent low in August, but the price still remains low.
Leo Kelly, CEO of Kelly Wealth Management at Hightower, says it’s time to bottom fish for some oil stocks.
“Oil is trading in a very dynamic market right now, so there will be volatility in energy. So, as long as you’re mindful of your allocation, and you are a long-term player, I think, you can do that. I think you can buy oil on this dip,” Kelly added.
Despite a cut in U.S. oil rigs, analysts said oil prices are expected to stay at low levels for some time. Other oil producers, especially in the Middle East and Russia, keep pumping near record levels. (Reuters)