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Dennis Gartman: Best Oil Trade on Egypt Unrest

Friday, 28 Jan 2011 | 1:55 PM ET

Tens of thousands of Egyptians have flooded the streets of Cairo to demand the ouster of President Hosni Mubarak, who has held onto power for more than three decades.

In the U.S., the investment community is concerned that civil unrest could cause one of the world's most heavily used shipping lanes to shutter. Extending from Port Said to Suez, the Suez Canal connects the Mediterranean Sea with the Red Sea. Being as many tankers transport oil through the Suez, some worry about supply should the canal close.

Gartman: Egypt & Oil ETFs
Egypt's impact on oil will not fizzle out by tomorrow, says Dennis Gartman, The Gartman Letter.

Trader Dennis Gartman, however, has his worries elsewhere.

"I'm more concerned about what will happen up in the Persian Gulf in the next two to three weeks than will be the the Suez Canal," Gartman said, adding that the unprecedented unrest in Egypt was triggered by the overthrow two weeks ago of Tunisian President Zine al-Abidine Ben Al Ben Ali.

To him, the real worry is that the Tunisian uprising has now inspired anti-government protests in Yemen and elsewhere.

"We ought to be concerned that Yemen has problems," Gartman said, adding that the unrest is likely to reach oil-rich Iran. "This is a big circumstance taking place across the Middle East and we need to pay attention. This is not going to go away anytime soon."

Should the Persian Gulf be disrupted, Gartman said a lot more crude oil would have to be moved from somewhere else. Gartman thinks Canada could benefit from the uncertainty in the Middle East, especially since it's already the U.S.'s No. 1 source of foreign oil. He thinks Suncor Energy is the "best play" on Canadian oil and the Egyptian unrest.

Gartman is a currency and commodities trader with more than 30 years of experience. Concurrently, he is author and publisher of the widely read "The Gartman Letter."

Read More from "Fast Money" —
Halftime: Egypt Unrest Catalyst for Traders

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CALL THE CLOSE

At the conclusion of Friday's broadcast, the "Fast Money" traders revealed where they think the market will go, and how they plan to play it.

Brian Kelly, founder of Kanundrum Capital, is a seller of the market.

Options trader Jared Levy said he's also a seller of the broad market, but does like Mosaic at current levels.

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Trader disclosure: On Jan. 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Grasso owns (ASTM), (BA), (BAC), (BWC), (C), (CSCO), (JPM), (LIT), (LPX), (MHY), (NDAQ), (PFE), (PRST) and (S). Pete Najarian owns (F) calls and bonds. Pete Najarian owns (V) call spreads. Pete Najarian owns (YHOO) and (YHOO) calls. Pete Najarian owns (VZ) calls. Pete Najarian owns (MS). Pete Najarian owns (JPM) call spreads. Pete Najarian owns (C). Pete Najarian owns (BAC) call spreads. Pete Najarian owns (GE). Pete Najarian owns (FRO). Pete Najarian owns (TCK).

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BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (IAU)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (ATW)
Accounts Managed By Kanundrum Capital Own (DBA)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (YEN)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (VXX)
Accounts Managed By Kanundrum Capital Own VIX calls
Accounts Managed By Kanundrum Capital Own (YGE)
Accounts Managed By Kanundrum Capital Own (GMCR) puts
Accounts Managed By Kanundrum Capital Are Short Australian Dollar

STEVE GRASSO
Stuart Frankel & Co and its partners own (AAPL)
Stuart Frankel & Co and its partners own (ABX)
Stuart Frankel & Co and its partners own (CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (NEM)
Stuart Frankel & Co and its partners own (NWS.A)
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PDE)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (RDC)
Stuart Frankel & Co and its partners own (S)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UAL)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners are short (QQQQ)
Stuart Frankel & Co and its partners are short (AAPL)

JARED LEVY
Accounts Managed by Jared Levy own (AAPL) put spreads
Accounts Managed by Jared Levy own (FCX) put spreads
Accounts Managed by Jared Levy own (GLD) call spreads
Accounts Managed by Jared Levy own (GS) put spreads
Accounts Managed by Jared Levy own (MOS) put spreads
Accounts Managed by Jared Levy own (MOS) call spreads
Accounts Managed by Jared Levy own (NFLX) call spreads
Accounts Managed by Jared Levy own (NFLX) put spreads
Accounts Managed by Jared Levy own (NOK) puts
Accounts Managed by Jared Levy own (NOK) calls
Accounts Managed by Jared Levy own (SBUX) put spreads
Accounts Managed by Jared Levy own (SINA) call spreads
Accounts Managed by Jared Levy own (SLV) put spreads
Accounts Managed by Jared Levy own (SPX) call spreads

DENNIS GARTMAN
Funds Managed by Dennis Gartman Are Long Gold
Funds Managed by Dennis Gartman Are Short Sterling
Funds Managed by Dennis Gartman Are Short Yen
Funds Managed by Dennis Gartman Are Short Euro
Funds Managed by Dennis Gartman Are Long Corn
Funds Managed by Dennis Gartman Are Long Aussie Dollars
Funds Managed by Dennis Gartman Are Long Nat Gas
Funds Managed by Dennis Gartman Are Long Swiss Franc

ANTHONY SCARAMUCCI
Scaramucci has no disclosures

CNBC.com with wires.

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