GO
Loading...

It's Supply, Not Speculation

Friday, 6 Jun 2008 | 6:25 PM ET

Tough talk today between Israel and other nations in the Mideast could be one of the reasons behind oil’s surge. Israeli Transport Minister Shaul Mofaz was quoted as telling an Israeli newspaper that an attack on Iran looks "unavoidable" given the apparent failure of sanctions to deny Tehran technology with bomb-making potential.

Combine the threat of more violence in the Mideast with increased demand from overseas and there could be real issues as growing countries take supply out of the market. “China alone could be as big an oil consumer as the U.S. by 2020,” says Tim Seymour.

“I remain bullish on emerging markets, but I’d also own downside protection,” he counsels, “especially in places such as Brazil that have run on high commodity prices.” My favorite markets are still Brazil and Russia and not China. And I’d be careful of frontier markets.”

Tomorrow's Trades #2
Crude oil's surge isn't just a U.S. story, with the Fast Money traders.

“Because I expect emerging nations will raise interest rates to counter inflation I think the trade is emerging market currencies. Look at, Wisdomtree Dreyfus , or Wisdomtree Trust ,” he says.















_____________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to fastmoney@cnbc.com.

Trader disclosure: On June 6, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman Owns (GS), Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (SUN), (TSO), (VLO), (MSFT), (AAPL), (NYX),(PPH),TIPs; Finerman's Firm And Finerman Own (C), (C) Leap; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (BIG); Macke Owns (WMT), (INTC), (MSFT), (DIS); Najarian Owns (AAPL), (BHI), (CHK), (HD), (HPQ), (TSO), (XLF), (NOK), (AMLN), (ENER); Najarian Owns (LEH) Puts; Najarian Owns (NUE) Calls, (AA) Calls; Seymour Owns (HAL)

  Price   Change %Change
BZF
---
ICN
---

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