GO
Loading...

Short Gasoline on Demand Dip: Kelly

Wednesday, 27 Mar 2013 | 5:57 PM ET
Short Gasoline on Demand Dip: Brian Kelly
Wednesday, 27 Mar 2013 | 5:15 PM ET
Strength in natural gas means lower prices for oil, Shelter Harbor Capital's Brian Kelly says.

Strength in natural gas means lower prices for oil, Shelter Harbor Capital's Brian Kelly said Wednesday.

Reacting to Citigroup research that forecasted that global oil demand to plateau by the end of the decade.

On CNBC's "Fast Money," Kelly revealed his trade: "It's short gasoline, long natural gas."

"If you look at gasoline, we were about 9 million barrels a day in demand in 2007," he added. "We're down to about 8 million barrels per day, so you're really starting to see that fall-off there."

Kelly warned that the energy trade was still linked to cold weather.

"In the long run, you'll be all right with nat gas," he added.

Josh Brown of Fusion Analytics said he liked ETF IEO, looking at producers of natural gas and oil while looking at consolidation.

"ExxonMobil pulled the trigger on XTO a couple of years ago. What they got in the bargain was a massive nat gas field," he said. "BP has done similar deals.

"It's very clear that that's where everything is going, so if you can find a company with those kinds of exposures and those leases in shale plays, it's probably going to be a winner over time."


  Price   Change %Change
NAT GAS
---
OIL
---
RBOB GAS
---
IEO
---
XOM
---
BP.
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report

  • Jay Yarow, The Business Insider, and Steve Milunovich, UBS, discuss whether Tim Cook is to blame for Apple's drop in growth. I think it's pretty clear they missed the big phone market and overestimated the success of the plastic 5C phone, says Milunovich.

  • CNBC's Eamon Javers reports on Bill Ackman's stake in Allergan. Javers says this is a classic case of insider trading that is not against the rules.

  • FMHR trader Josh Brown thinks Dunkin' Brands looks fantastic technically, while Mike Murphy says investors are questioning the company's massive expansion plans.