Investors rejoice. The markets have provided another buying opportunity within the oil space, Global Hunter Securities Senior Analyst Mike Kelly said Friday. (Tweet This)
"If you look back at Dec. 15, these stocks bottomed out and then they absolutely ripped back," Kelly said in a CNBC "Power Lunch" interview. "A lot of these [companies] are testing those Dec. 15 lows, so we're pretty encouraged about where we stand."
U.S. crude futures have dropped about 9 percent since Dec. 15 and have dropped more than 10 percent in July, according to FactSet. WTI futures settled at $50.89, down 2 cents, on Friday.
Kelly added that, while plunging oil prices have definitely contributed to oil companies' losing large portions of their stock value, they have also been driven lower by CEOs' not raising concerns.
"The message has been too good from these oil companies [saying that] at $50 we're not completely losing our shirts," he said. "That has led investors to think that maybe $50 isn't the right stopping point; we have to go even lower than that."