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Don’t trust the price of oil: JP Morgan Funds strategist

Plenty of Wall Street pros have been looking at the price of crude oil as an important barometer for the global economy and concluding weakness is a bearish sign.

On Wednesday new declines led to speculation that oil could break below $80, an important psychological level, and, in turn, may be a sign that the economy will get even worse.


Oil
Lucy Nicholson | Reuters

However, on CNBC's "Closing Bell" David Kelly of JPMorgan Funds suggested the negative outlook was misguided.

"Falling oil prices are positive for the U.S. economy," he said. "Ultimately that's a reason for stocks to go up." And he believes it's only a matter of time before Wall Street catches on.

Looking at the catalyst for the decline, Kelly said the weakness was much more about the vast reserves that are now accessible in North America. "The United States is swamping the oil market with supply," Kelly said.

Read More Oil resumes slide, falling $2 after second big U.S. stock build

When supply goes up and demand remains relatively constant, price goes down.

In fact, Kelly said the supply increase is so significant, oil should no longer be viewed as a "tell" for the state of the world economy. "Oil has become untrustworthy," he said. If you're following oil to determine the state of the globe, you'll regret it.

Keith Fitz-Gerald of Money Map Press agreed. And taken a step further, given the selloff in oil related stocks, he thinks many have become buys at current levels.

"I currently own and like Kinder Morgan," he said. As a pipeline company he likes that Kinder Morgan profits are not tethered to crude's spot price. Also, "it's got good dividends," he said. "I see it as a win, win."