PreMarket Prep hosts Joel Elconin and Dennis Dick discussed the real impact that the OPEC production cut deal will have on oil stocks. According to Dick, WTI’s 9 percent jump to nearly $50 isn’t really cause for celebration for many of the higher-cost oil producers.

“A lot of these companies are still struggling here. If oil gets back to $70, $80, $90, a lot of these companies start making some serious money again, but they’re just holding on here in the $40s and $50s,” he explained.

Dick noted that investors should keep the OPEC deal in perspective. It’s certainly a step in the right direction, but oil prices still need to be much higher for many companies to have a chance of profitability and growth.

He mentioned Seadrill Ltd SDRL 2.2% as one example of a stock that has made a huge move since the OPEC news came out. Dick cautioned…

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