Trading the OPEC Oil War: Gartman

Tuesday, 28 May 2013 | 5:45 PM ET
Trading the OPEC Oil War: Dennis Gartman
Tuesday, 28 May 2013 | 5:15 PM ET
Commodities trader Dennis Gartman reveals how to play crude oil amid a rift in OPEC members.

A shale boom in the United States makes a winning oil trade available closer to home, Dennis Gartman of The Gartman Letter said Tuesday.

"You're going to continue to see continued expansion," he said on CNBC's "Fast Money."

Gartman added that the best plays would involve railroads and refiners as the domestic energy boom, and he said that OPEC would feel a squeeze.

"If there were a way to sell OPEC short, I would try to find a way to sell OPEC short. I'm not sure how one does that," he said.

(Read More: OPEC Meeting Flies Under the Radar for Oil Market)

"The loser in this is going to be OPEC, no ifs, ands or buts about it," he said. "And Saudi Arabia is hanging on by its fingernails, angering the rest of the cartel. It's really quite interesting."

Mike Khouw of DASH Financial said that he also liked the oil services companies, such as Halliburton.

(Read More: Two Energy Stocks With Zing: Pro)

"They have a tendency to see some mean reversion with respect to their margins, and we don't have that on the near term, but ultimately we're going to see it," he added.

Khouw also said that he liked Schlumberger.

(Read More: Top Emerging ETF Trend: Pro)

Josh Brown of Fusion Analytics offered exchange-traded fund IEO as a winning play, with its focus on producers in North America.

"Things like Devon, Apache, Anadarko – all of them technically are set up really well," he added.

Trader disclosure: On May 28, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Brian Kelly is long TLT; Brian Kelly is long TREASURIES COPPER BRAZIL; Brian Kelly is short STP FUTURES; Brian Kelly is short SPY; Dan Nathan is long JNJ; Dan Nathan is long IBM; Dan Nathan is long NFLX; Dan Nathan is short IWM; Josh Brown is long XLU; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long OXY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Wife, Linda Snow, works at Merck.

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