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Pro Trader: Buy These Oil Services Stocks

Both WTI and Brent crude oil prices fell Thursday, with WTI hitting just below $100 per barrel. The spread between the two crude prices has been narrowing, with the light, sweet crude crossing the $100 markfor the first time since July on Wednesday.

But it was Brent crude that MercBloc’s Dan Dicker had his eye on, telling the “Fast Money” team that the price is “very sticky” right now. And that has created an opportunity in a sector he feels is undervalued.

“Definitely the oil service sector is the place to be with a very sticky oil price up here,” he said, “even if we feel like it is going to be coming down or at least moderating a little over the next couple months.”

His personal favorites are Schlumberger and Helmerich & Payne .

Trader Steve Grasso is also looking at oil services companies. He’s longBasic Energy Services and Key Energy Services. He’s interested in E&P companies as well.

Jon Najarian likes some of the offshore and drilling companies like Hercules Offshore. “That’s a high beta stock to the upside,” he said.

He also suggests Noble Energy and Patterson-UTI Energy . He would stay away from Transocean because "it seems to be the one that bad stuff happens around lately."


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Trader disclosure: On November 17, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami owns C; Adami owns GS; Adami owns INTC; Adami owns AGU; Adami owns NUE; Adami owns MSFT; Adami owns BTU; Najarian has long call spreads AKS; Najarian has long call spreads IBM; Najarian has long call spreads FSLR; Najarian has long call spreads RAM; Najarian is long CME; Najarian is long CBOE; Najarian is long CIGX; Grasso owns AA; Grasso owns AKS; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Dicker has positions in WTI; Dicker has positions in SLB; Dicker has positions in HP

For Patty Edwards
Trutina Financial is long AAPL
Trutina Financial is long GLD
Trutina Financial is long INTC
Trutina Financial is long SLB
Trutina Financial is long GOOG
Trutina Financial is long TGT
Trutina Financial is long NEE

For Steve Grasso
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 HPQ
Stuart Frankel & Co and its partners own HSPO
Stuart Frankel & Co and its partners own MET
Stuart Frankel & Co and its partners own MU
Stuart Frankel & Co and its partners own NYX
Stuart Frankel & Co and its partners own PRST
Stuart Frankel & Co and its partners own XRX

For Camilla Sutton
No disclosures

For Jeff Kilburg
No disclosures

For Brent Thill
UBS Securities LLC makes a market in the securities and/or ADRs of this company.

For Fred Cannon
Bank of New York Mellon (BK - $19.64, Market Perform)
KBW expects to receive or intends to seek compensation for investment banking services from Bank of New York Mellon in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in Bank of New York Mellon securities.
Wells Fargo & Company (WFC - $24.94, Market Perform)
KBW expects to receive or intends to seek compensation for investment banking services from Wells Fargo & Company in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in Wells Fargo & Company securities.
Morgan Stanley (MS - $14.66, Market Perform)
KBW expects to receive or intends to seek compensation for investment banking services from Morgan Stanley in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in Morgan Stanley securities.
Goldman Sachs Group, Inc. (GS - $95.60, Outperform)
KBW expects to receive or intends to seek compensation for investment banking services from Goldman Sachs Group, Inc. in the next three months.
KBW has received compensation for investment banking services from Goldman Sachs Group, Inc. in the past 12 months.
KBW currently makes a market and/or acts as a liquidity provider in Goldman Sachs Group, Inc. securities.
Goldman Sachs Group, Inc. currently is, or was during the 12-month period preceding the date of distribution of this report, a client of KBW.
Citigroup (C - $26.86, Market Perform)
KBW expects to receive or intends to seek compensation for investment banking services from Citigroup in the next three months.
KBW has received compensation for investment banking services from Citigroup in the past 12 months.
Citigroup currently is, or was during the 12-month period preceding the date of distribution of this report, a client of KBW.
Bank of America Corp. (BAC - $5.90, Market Perform)
KBW expects to receive or intends to seek compensation for investment banking services from Bank of America Corp. in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in Bank of America Corp. securities.
State Street Corporation (STT - $39.93, Outperform)
KBW expects to receive or intends to seek compensation for investment banking services from State Street Corporation in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in State Street Corporation securities.
JPMorgan Chase & Co (JPM - $31.47, Outperform)
KBW expects to receive or intends to seek compensation for investment banking services from JPMorgan Chase & Co in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in JPMorgan Chase & Co securities.

For Brian Kelly
Shelter Harbor Capital is long PM
Shelter Harbor Capital is long GLNG
Shelter Harbor Capital is long LNG
Shelter Harbor Capital is long SRE
Shelter Harbor Capital is long V
Shelter Harbor Capital is long CLF
Shelter Harbor Capital is short German bunds
Shelter Harbor Capital is short SPY
Shelter Harbor Capital is short EWO

CNBC.com with wires.

Symbol
Price
 
Change
%Change
BAS
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HERO
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HP
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KEG
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NE
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PTEN
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RIG
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SLB
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MV OIL SVCS
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