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Emerging Money: Overseas Oil Opportunities

Wednesday, 16 Jul 2008 | 3:52 PM ET

A pullback in crude prices should mean rising opportunities in international oil stocks, but which ones? Find out from Fast Money's favorite international trader, Tim Seymour.

Crude oil prices dropped sharply for a second day on Wednesday after a U.S. government report showed a surprise increase in inventories and continued weak demand in the world's top consumer nation.

We’re seeing demand destruction, that’s clear, says Tim Seymour on CNBC’s Closing Bell. But it means different things for different companies.

Obviously refiners do better in this environment. I’m looking at *PetroChina and Sinopec . Not only have these companies been penalized by higher prices with weak refining margins, but they are also bearing the burden in China of subsidized oil prices. With lower oil prices on the horizon these guys should begin to see margin expansion.

Also keep an eye on banks around the world that have been getting hit by inflation, Seymour adds. I’m talking places such as Brazil, Russia and Turkey where rising interest rates are putting a crimp on margins. They could benefit if oil prices drop and as a result we start to see a turn on inflation.

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*Notes a company in Tim Seymour's Emerging Money Top 20, an index made up of 20 firms poised to profit from explosive global growth.

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Trader disclosure: On July 16, 2008, 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 (GS), (MSFT), (USO), (WMT); Adami Owns (C), (AGU), (GS), (INTC), (NUE), (BTU), (MSFT); Najarian Owns (AAPL), (NOK), (TSO), (XLF), (GS); Najarian Owns (ANR) Puts; Najarian Owns (CSCO) Calls, (PRU) Calls, (SLB) Calls, (UYG) Calls, (YHOO) Calls; (WLT) Calls; Finerman Owns (GS); Finerman's Firm Owns (MSFT), (NOK), (SUN), (TSO), (TWX), (VLO), (AXP), (M); Finerman's Firm Owns (TGT) Calls; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Is Long SPX Index Puts; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM); Seymour Owns (AAPL), (F), (INTC), (MER), (MSFT), (TSO); Seygem Asset Management Owns (EEM), (VIP)

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