Now is not the moment to get into the oil sector, according to one analyst.
"I think it's time to still stay away, I don't think it's time to get in yet," Brad Handler, managing director of equity research at Jefferies, told CNBC's "Power Lunch" on Monday.
Oil prices were down about 4 percent Monday after a Saudi-Venezuela meeting over the weekend showed few signs of an impending boost to prices.
Despite geopolitical events, Handler thinks that oil companies are currently reacting to credit constraints and agency rating pressures, and are struggling to manage dividends and balance sheets. While those factors are still in play, investors should stay away from the sector, he said.