Dicker: Oil Prices Drop Under $100 on Weak China Data

Tickers in this article: EOG HK

NEW YORK (TheStreet) -- I was talking to Jim Cramer today about oil's latest retreat under $100. While oil has become difficult and trendless of late, I told Jim I thought that every drop under $100 represented an opportunity to buy specific American exploration and production companies.

Oil prices moderated on Tuesday with the release of Chinese PMI figures that were again weak, the third month in a row. Add a relief of tensions from the Ukraine and another stockpile build that was largely expected and you saw prices swoon almost $2.

But despite Barron's recent cover story predicting oil prices would fall to $75, I think just the opposite is the case, and we will see continually higher oil prices in 2014 and beyond. That makes American producers of oil a great investment for the long-term.

Two that I particularly like is EOG Resources , an Eagle Ford shale specialist who is increasing production at a faster pace than just about every other player in the space, and Halcon Resources , a speculative play that has many problems but has recently reported very encouraging results in their area of the Eagle Ford as well.

I talk more about oil and the opportunities in U.S. E+Ps with Jim in the video above.

At the time of publication the author had a position in EOG.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.