GO
Loading...

Not All Refiners Have Gulf Exposure

Friday, 12 Sep 2008 | 4:10 PM ET

US crude oil futures retreated on Friday and briefly dipped below $100 a barrel for the first time since April 2, until Hurricane Ike's threat to the Gulf coast provided a temporary floor.

Fourteen refineries -- 22 percent of total U.S. refining capacity -- have been shut ahead the storm. That means, nearly all of the crude oil and natural gas production in the Gulf of Mexico is idled due to the weather.

But not all refiners have rigs in the Gulf. “Tesoro , Western and Holly all moved higher on Friday because they don’t have exposure ,” explains Addison Armstrong of Tradition Energy. “If the storm is severe they can keep selling when others can’t.”

But more often than not damage is not severe. And analysts say the market is mixed, at best, over how long the industry would remain hobbled after the storm, particularly after Hurricane Gustav caused only minor damage to oil facilities earlier this month.


---------------(scroll down for more trades)---------------

Refiners might not be the best way to make money in the space right now. For his favorite trade Armstrong says, “I’m cautiously bullish on natural gas. We have a lot of production shut in. I think it could get a nice bounce here.”



______________________________________________________
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 those e-mails to fastmoney@cnbc.com.

  Price   Change %Change
TSO
---
WNR
---

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