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Black Gold - The New Gold?

Is oil about to rally hard, just like gold did a few weeks back?

It sure seemed that way until Friday when crude oil prices fell from a one-year high above $78 a barrel, as investors questioned whether an $8-a-barrel rally since last week was warranted with global supplies still high.

"If you look at the stock situation you would not be buying. There is still an awful lot of supply," says Rob Montefusco, an oil trader with Sucden Financial.

Nonetheless traders can’t help but notice the bullish momentum generated by this market. And with the dollar widely believed to be growing weaker long-term -- oil prices should continue to rally.

So is oil about to rally hard, just like gold did a few weeks back?

I 'do' think oil continues to rally, says Joe Terranova. And I’d play it with the oil services names as well as the refiners.

There’s no doubt that Schlumberger and Halliburton are making money, adds Tim Seymour. But as far as refiners are concerned, I think margins are kind of stuck in the mud.

If you're bullish energy I'd play the energy space with Weatherford , adds Pete Najarian.

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Trader disclosure: On Oct. 16th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (HGSI) Call Spread; Najarian Owns (XLF) Calls; Najarian Owns (YHOO) Call Spread; Najarian Owns (BAC); Najarian Owns (WFT) Calls; Grasso Owns (ASTM), (BAC), (C), (COST), (PRST), (V), (WMT), (FAZ), (XLF), (AAPL); Terranova Owns (SUN), (OIH), (HOC), (HES), (POT); Terranova Is Short (GRMN), (CCL)

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