Top Stories
Top Stories

Power Play: Trust the oil recovery

Alberto Pizzoli | Getty Images

Oil is rallying on Monday, with West Texas Intermediate and Brent crude up more than 2 percent.

Michael Binger, senior portfolio manager at Gradient Investments, tells CNBC's "Power Lunch" he expects oil to hold at these levels.

Read More Cramer: Oil just made a scary move—I'm taking the other side of the trade

"Oil prices have recovered close to the $50 per barrel area; U.S. production is poised to decline and global demand is increasing, which should keep oil in the $40-$50 range near term," Binger said.

He is playing the recovery by owning stocks in the oil and gas industry, but is being selective. "Oil companies' balance sheets are still stretched [and] limiting access to financing is eliminating new drilling opportunities," Binger said.

WTI is up 78 percent since the lows of February 11.