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Prop Desk: Refiners

Thursday, 17 Sep 2009 | 5:44 PM ET

Over the past month refiners such as Tesoro and Valero have made sizable gains though the price of oil has gone nowhere.

These charts say it all. Over the past 30 days shares of Tesoro and Valero are both up over 20%. Yet the spot price of crude oil has been stuck in a range.

What gives?

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TSO
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These stocks were priced for Armageddon and the trade was unwound, explains Joe Terranova. Now margins are starting to improve in both distillates and reformulated gasoline. I think refiners through the end of the year may just be the best energy play.

I’m watching Frontier Oil and Western Refining , adds Pete Najarian due to unusual options action. Western has lagged the other refiners. Keep both on your radar.

Prop Desk: Market Head Scratcher
A look at refiners ripping while oil snoozes.

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Trader disclosure: On Sept. 17, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AA), (F), (BAC), (EEM), (FXI), (SBUX), (VIP); Seymour's Firm Owns (MTL); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman Owns (PDE); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman Owns (RIG) ; Finerman's Firm Owns (WMT), (RIG), (MSFT), (NOK), (PBR), (PDE), (TGT); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO), (IYR); Najarian Owns (AAPL) & Short (AAPL) Calls; Najarian Owns (ACI) Call Spread; Najarian Owns (BAC) & Short (BAC) Calls; Najarian OWns (C) Calls; Najarian Owns (CUX); Najarian Owns (FCX), Owns (FCX) Put, Is Short (FCX) Calls; Najarian Owns (GE) Calls; Najarian Owns (JPM) & Is Short (JPM) Calls; Najarian Owns (JOYG) & Short (JOYG) Calls; Najarian Owns (MS) And Is Short (MS) Call; Najarian Owns (MSFT) And Is Short (MSFT) Call; Najarian Owns (PALM) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (TEVA); Najarian Owns (V) & Short (V) Calls; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Calls ; Najarian Owns (WNR) Calls; Terranova Owns Gold Futures; Terranova Owns Dec Crude Contracts; Terranova Owns Dec 2010, Dec 2012 Crude Contracts; Terranova Owns (WNR) & (WNR) Calls; Terranova Owns (HOC)

For Dennis Gartman
Gartman Owns Gold
Gatman Owns Canadian Dollar

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VLO
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TSO
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