Dicker doesn’t see any oil coming out of Libya for another year, so “if the Saudis play into this at this point, boy we are going to see oil go up in a hurry.”
Sultan, who was thought to be about aged 86, had been heir to the throne of the world’s top oil exporter since 2005 but was a central figure in the Saudi decision making since becoming defense minister in 1962. An “Allegiance Council” will appoint his successor.
Dicker also had his eye on the “WTI rally” and the narrowing spread between WTI and Brent .
He thinks the closing in of the spread has more to do with a “hedge fund blow up” than any issues with Brent right now. In fact, he said upcoming rebalancing of the Dow Jones-UBS Commodities Index in January and Brazilian oil company Petrobras' decision to switch to a Brent benchmark are bullish news for Brent.
So, with big earnings on the schedule for the week from names like ConocoPhillips , Exxon Mobile , and Chevron , how should you play the oil trade?
According to Dicker, earnings won’t matter for big integrated companies. While a company like Exxon may blow out expectations, he said the stock will be asking about the XTO trade, natural gas and what the company is doing with its refining assets.
“At this point, what I really do recommend is that you rotate into higher beta E&P and get out of the dividend-paying, big integrated stocks like Exxon, Chevron, [and] so on,” he said.
He bullish Apache , Chesapeake Energy , Anadarko Petroleum and EOG Resources .
Got something to to say? Send us an e-mail at firstname.lastname@example.org 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 Web site, send those e-mails to email@example.com.
Trader disclosure: On Oct 25, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long IBM; Terranova is long AAPL; Terranova is long GS; Terranova is long FCX; Kelly is short British pound; Dicker owns CHK; Dicker owns COP; Dicker owns HP
For Patty Edwards
Trutina Financial is long AMZN
Trutina Financial is long AGNC
Trutina Financial is long GOOG
Trutina Financial is long GLD
Trutina Financial is long POT
Trutina Financial is long SYT
Trutina Financial is long QCOM
Trutina Financial is long MSFT
Trutina Financial is long VLO
Trutina Financial is long NKE
For Brian Kelly
Shelter Harbor Capital is long 5 year notes
Shelter Harbor Capital is long GLD
Shelter Harbor Capital is long Corn
Shelter Harbor Capital is long Soybeans
Shelter Harbor Capital is long MOO
Shelter Harbor Capital is long IPI
Shelter Harbor Capital is long OIH
Shelter Harbor Capital is long MON
Shelter Harbor Capital is long MSFT
Shelter Harbor Capital is long EWA
For Mark Mahaney
The research analyst(s) primarily responsible for the preparation and content of this research report are named in bold text in the author block at the front of the product except for those sections where an analyst's name appears in bold alongside content which is attributable to that analyst. Each of these analyst(s) certify, with respect to the section(s) of the report for which they are responsible, that the views expressed therein accurately reflect their personal views about each issuer and security referenced and were prepared in an independent manner, including with respect to Citigroup Global Markets Inc and its affiliates. No part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst in this report.
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of eBay Inc, Yahoo! Inc, Netflix Inc. This position reflects information available as of the prior business day.
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of Google Inc.
Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from eBay Inc, Google Inc.
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from Yahoo! Inc.
Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from Amazon.com Inc, eBay Inc, Google Inc, Priceline.Com Inc, Yahoo! Inc in the past 12 months.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): eBay Inc, Google Inc, Yahoo! Inc.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: Amazon.com Inc, eBay Inc, Google Inc, Priceline.Com Inc, Yahoo! Inc.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: Amazon.com Inc, eBay Inc, Google Inc, Priceline.Com Inc, Yahoo! Inc.
Analysts' compensation is determined based upon activities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates ("the Firm"). Like all Firm employees, analysts receive compensation that is impacted by overall firm profitability which includes investment banking revenues.
The Firm is a market maker in the publicly traded equity securities of Amazon.com Inc, eBay Inc, Google Inc, OpenTable, Inc, Priceline.Com Inc, Yahoo! Inc, Netflix Inc.
For Willie Williams
For Doug Harter
I, Douglas Harter, CFA, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.
CNBC.com with wires.