Looks like a bottom in oil: Strategist

Has oil hit bottom? Saut says yes
Has oil hit bottom? Saut says yes

After months of being on a downward slide, it looks like oil has hit a bottom, strategist Jeffrey Saut told CNBC on Monday.

He pointed to activity over the past week to bolster his call. First, there was the start of some M&A activity, he said. Then, on Thursday, the March crude futures oil contract made an "undercut low," which is a print below the previous reaction low. On Friday, the same contract traded higher by more than 8 percent.

"That is how bottoms are made," the managing director at Raymond James said in an interview with "Street Signs."

"I think you put a low in on crude oil prices, and we'll have to see if that holds in the coming days ahead."

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U.S. crude settled up $1.33, at $49.57 on Monday, the highest in nearly a month. On Friday, it closed up 8 percent, its best day since June 2012, after data showed the number of rigs in operation in the U.S. falling by 94 for the week.

Benchmark crude was last up $1.56 at $54.55 a barrel Monday, after swinging in a wide band of between $55.62 and $51.41.

That means the energy stocks, which have been "absolutely crushed," may also soon see a bounce, Saut said. He noted that some stocks were down to $2 from $40.

"If crude oil has bottomed, you're going to see some pretty dramatic moves on the upside on some of those compressed stocks," he said.

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He thinks individual investors would be best served to buy energycentric mutual funds or exchange-traded funds like the XLE.


—CNBC's Jackie O'Sullivan and Reuters contributed to this report.