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At Your Oil Service

Tuesday, 9 Oct 2007 | 8:21 PM ET

Oil bounced back above $80 and brought the oil service stocks with it. Are names like Halliburton (HAL) and Schlumberger (SLB) the best way to play crude’s volatility?

Demand forecasts for oil are changing all over the world. Countries in Asia and Eastern Europe are increasing their demand, and companies with good growth prospects in that region are poised to prosper, Tim Seymour says. He likes Halliburton and Baker-Hughes (BHI), which have operations in Russia and the Caspian Sea area.

It isn’t just the stocks. The options activity in the oil services names has been explosive as well, Pete Najarian says. While integrated oil and refineries have struggled, the services are going full-speed ahead in the options pits. BHI is experiencing especially wild options volume, he says.

Carter Worth recommends staying away from the “extended” Schlumberger, and, by extension, the Oil Services ETF (OIH), because it is heavily weighted in SLB. Instead, he likes the trades in Halliburton and BHI.


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Trader disclosure: On Oct 8, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders

Macke Owns (EMC), (INTC), (SWY), (ATVI), (JWN): Najarian Owns (MON), (NAT), (VCLK): Seygem Asset Management Owns (AA), (AAPL), (ABV), (ITU), (MSFT), (TWX), (GLD), (SBUX), Seygem Asset Management Owns FEMSA: Oppenheimer & Co. Is A Market Maker In (DRYS), (ESEA), (TIVO), (VCLK), (ATVI), (ERTS), (CPKI), (RIMM)

Oppemheimer & Co. Has Received Compensation For Investment Banking Services From (ESEA) Within The Past Year, Oppenheimer & Co. Will Receive Investment Banking Compensation From (ESEA) For Services Performed Within The Past Year, Oppenheimer & Co. Intends To Seek And Expects To Receive Compensation For Investment Banking Services From (ESEA) Within The Next Three Months

Oppenheimer & Co. Is A Market Maker In (CMCSA), Oppenheimer & Co. Has Received Compensation For Investment Banking Services From Comcast Corp. Within The Past Year

Charles Schwab Is A Sponsor Of "Fast Money"

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