I’d note that Exxon is sending rigs from the gulf to other parts of the world, adds Tim Seymour. With a moratorium on deep-water drilling in the gulf I really think oil prices are going up.
I agree oil prices could climb, adds Brian Kelly, just on a decline in supply.
My estimates suggest oil trades around $85 into the back half of the year and around $90 in 2011, adds Raymond James analyst Pavel Molchanov.
I also agree oil will go higher in the wake of these events, says strategic investor Dennis Gartman, but I don't expect oil to trade much over $100 in my lifetime. There's a very large contango out there which says to me there's more than enough supply. With a very large contango, it's hard to feel broadly bullish.
If you're looking for a trade, I'd take a look at the solar names, adds Seymour. First Solar just got a big upgrade from Credit Suisse. I think alternative energy could get a push from these events.
I like to call solar 'oil on steroids', adds Raymond James analyst Pavel Molchanov. If oil trades higher solar usually follows. But my favorite energy play right now is with the super-majors; my favorite name among them is Chevron, he says.
In the space I think the trade is long nat gas, counsels Guy Adami. I'd play it with HGT or Apache.
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Trader disclosure: On June 17, 2010, 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 (AAPL), (BAC), (NOK), (SBUX); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman’s Firm owns (AAPL); Finerman owns (BP) calls; Finerman & Finerman’s Firm owns (HPQ); Finerman & Finerman’s Firm owns (IBM); Finerman owns (KFT); Finerman & Finerman’s Firm owns (RIG) calls; Finerman is short (IYR); Finerman is short (IWM); Finerman is short (MPY); Finerman is short (SPY); Pete Najarian owns (MRVL), short calls; Pete Najarian owns (HPQ), short calls; Pete Najarian owns (MRVL), short calls; Pete Najarian owns (CMC) a call spread; Pete Najarian owns (TCK), short calls; Pete Najarian owns (AMD) calls; Pete Najarian owns (LLC) a call spread; Pete Najarian owns (C) calls; Pete Najarian owns (BAC); Pete Najarian owns (BBY) a call spread; Kelly is short (GS); Kelly owns (BP) puts; Kelly owns (FCX) puts; Kelly owns (GLD); Kelly owns (GDXJ)
Funds Managed By Dennis Gartman Are Short Yen
Funds Managed By Dennis Gartman Are Long Canadian Dollar, Australian Dollar
Stutland equities is a market maker in (SPX), (VIX) & (VXX)
Stutland equities owns (SPX) & (VIX) futures and options
Stutland equities owns (VXX)
Molochanov owns (CVX)
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