Oil’s Sharp Move Higher Makes No Sense: Market Pro

Oil prices continued to march higher Tuesday, nearing $100 per barrel. But Stephen Schork, editor of The Schork Report, told the “Fast Money” team the sharp gains make no sense.

“We’ve got this move in oil on par with what we saw when Iraq attacked Kuwait,” he said. “It makes no reasonable or logical sense.”

There are only two other times oil moved more than 30 percent in 28 sessions of trading, Schork pointed out—the aforementioned invasion of Kuwait and this past spring, right before the oil bubble imploded.

“The bottom line is there is no fundamental justification for this kind of move.”

Since oil is acting irrationally, Schork said it’s anyone’s guess if it will hit over $100. But if it does go above that psychologically important number and stays there, it does not bode well for the holiday season.

So what’s the trade?

Fast trader Patty Edwards has her eye on the Mid-Con refiners, two of which were highlighted by Goldman Sachs. The firm rated Western Refining a ‘conviction buy’ and HollyFrontier a ‘buy.’

“Everyone has been talking them down so far and when you don’t have that pipeline coming out of Canada, the delay on that is going to be about a year, there’s a lot of talk that tells me that might be someplace to look,” she said, “because people have been too negative in the past two weeks on those.”

Trader Brian Kelly likes Valero Energy and Tesoro , and suggests looking at the liquid natural gas space because of diesel demand coming from Japan.

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Trader disclosure: On Nov 15, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long call spreads AAPL; Najarian is long call spreads JPM; Najarian is long call spreads MS; Najarian is long call spreads INTC; Najarian is short LNKD; Cortes is long XLE; Cortes is long US treasuries; Cortes is short AAPL; Cortes is short EURO; Cortes is short DB; Cortes is short STD; Cortes is short BAC; Cortes is short XRT; Edwards is long XLK

For Brian Kelly
Shelter Harbor is long GLNG
Shelter Harbor is long LNG
Shelter Harbor is long EWZ
Shelter Harbor is long CAF
Shelter Harbor is long GLD
Shelter Harbor is long RSX
Shelter Harbor is short EWO

For Patty Edwards
Trutina Financial is long AAPL
Trutina Financial is long GLD
Trutina Financial is long INTC
Trutina Financial is long VLO
Trutina Financial is long TGT

For Willie Williams
No disclosures

For Toni Sacconaghi
Toni Sacconaghi maintains a long position in Seagate Technology (STX).
All statements in this report attributable to Gartner represent Bernstein's interpretation of data, research opinion or viewpoints published as part of a syndicated subscription service by Gartner, Inc., and have not been reviewed by Gartner. Each Gartner publication speaks as of its original publication date (and not as of the date of this report). The opinions expressed in Gartner publications are not representations of
fact, and are subject to change without notice.
Mit Shah maintains a long position in Apple Inc. (AAPL).
Accounts over which Bernstein and/or their affiliates exercise investment discretion own more than 1% of the outstanding common stock of the following companies DELL / Dell Inc.
Bernstein currently makes a market in the following companies DELL / Dell Inc.
The following companies are or during the past twelve (12) months were clients of Bernstein, which provided non-investment banking securities
related services and received compensation for such services DELL / Dell Inc.
An affiliate of Bernstein received compensation for non-investment banking-securities related services from the following companies DELL / Dell Inc.

For Charles Grom
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Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from (WMT) this company within the past year.
(WMT) has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.

For Ron Insana
No disclosures

For Stephen Schork
Schork has a position in crude oil

For Doug Freedman
RBC Capital Markets, LLC makes a market in the securities of Intel Corporation and may act as principal with regard to sales or
purchases of this security.
A member company of RBC Capital Markets or one of its affiliates received compensation for products or services other than
investment banking services from Intel Corporation during the past 12 months. During this time, a member company of RBC Capital
Markets or one of its affiliates provided non-investment banking securities-related services to Intel Corporation.
A member company of RBC Capital Markets or one of its affiliates received compensation for products or services other than
investment banking services from Intel Corporation during the past 12 months. During this time, a member company of RBC Capital
Markets or one of its affiliates provided non-securities services to Intel Corporation.
RBC Capital Markets has provided Intel Corporation with non-investment banking securities-related services in the past 12 months.
RBC Capital Markets has provided Intel Corporation with non-securities services in the past 12 months.
The author is employed by RBC Capital Markets, LLC, a securities broker-dealer with principal offices located in New York, USA.

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