Over the weekend, large oil producing nations failed to reach an agreement with regards to capping off current global production levels. Saudi Arabia asserts that Iran should limit its production as well, but Iran has not pledged its participation in curbing its output levels. Because of this, Saudi Arabia is no longer agreeing to limit its production. This has killed any hopes of establishing a freeze on global oil production.

This news has brought oil prices down today. As long as the commodity continues to be produced beyond demand levels, the price of oil will stay relatively low. Many analysts think that OPEC nations could continue to increase their oil production through the year. 

If this happens, you can take advantage of oil prices trending lower.Below, we outline three stocks that have an inherently short position on oil. This means that they stand to gain as the price of oil stays low because they use oil to carry out their business operations. Each of the stocks hold a Zacks Rank #2 (Buy) or better, and stand to lower their expenses as a result of being able to purchase cheaper oil.

Air France-KLM (AFLYY - Snapshot Report)

Air France-KLM is a Franco-Dutch airliner that transports tens of millions of passengers each year.AFLYY is a Zacks Rank #2 (Buy), and it has a market cap of $2.88 billion.

Air France-KLM has some nice growth and value metrics to back it up. The company has a current cash flow growth of 27.08%.The airliner’s EPS is projected to grow by 189.33% this year.It also trades at a PEG of just 0.15, suggesting that the company may be undervalued. AFLYY also trades at a forward PE of just 4.27, while the rest of the industry’s average PE is 10.14.

Controladora Vuela Compania de Aviacion (VLRS - Snapshot Report)

Controladora Vuela Compania de Aviacion is an airliner that engages in passenger transport. The company also has a focus on non-passenger services as well, transporting cargo shipments, animals, fresh food, and more.Controladora is a Zacks Rank #2 (Buy), and the company has a beta of just 0.49.

VLRS has some nice growth metrics going for it. The company’s sales are projected to grow by 5%. This is great to see because VLRS already enjoys higher profit margins than the average airliner. Controladora has a net margin of 13.36%, while the industry’s average net margin is just 7.88%. The company is growing its sales considerably, and it also has a history of high margins. These two things are always great to see together. Fuel costs are one of the biggest expenses for airline companies, so lower oil prices should help the company in maintaining considerable margins this year.

Covenant Transport Inc (CVTI - Snapshot Report)

Covenant Transport is a trucking company that offers premium transportation services in the US.CVTI is a Zacks Rank #1 (Strong Buy), and it also has a market cap of just $409.17 million.

Covenant looks like a buy across several notable metrics. The company has a net margin of 5.81%, which is significantly higher than the industry average. The truckload carrier has a current cash flow growth of 45.55%. Covenant has an EV/EBITDA of 4.56 and a forward PE of 12.63, while the rest of the trucking industry trades at an EV/EBITDA of 5.22 and a PE of 14.33. 

In the last 60 days, one analyst has revised his/her earnings estimate upwards for this quarter.In that same time frame, there haven’t been any negative revisions posted. Covenant has beaten our EPS consensus in three of the last four quarters by an average of 7.89% per quarter.