“We have a gas situation here that can’t do anything but go up,” he said on “Fast Money.” “Most everybody is long. It’s definitely going to go higher.”
Dicker said $4-per-gallon gas is almost a certainty, with a strong likelihood of it hitting $5 by summer, amid threats of supply disruption from Iran.
“If the Israelis lose their patience, it might in fact go to $7,” he said.
Dicker said commodities traders were not yet factoring in a decision from President Obama to release the U.S. strategic petroleum reserve anytime soon.
“There’s no question in an election year that the president’s at some point is going to hit the SPR,” he said, adding that such a move might happen by summer or fall.
Companies with exposure in alternate oil-rich regions such as Mozambique and Angola were worth a look, as well as smaller players which can replace some of the lost supply in case of a significant disruption, Dicker said, pointing to Apache and BP.
Trader Stephen Weiss argued that this time was different from other periods where oil broke through $100 a barrel. He pointed to a recent Bank of America study that found that geopolitical causes for rising prices impacted GDP by 0.5 percent, while that factor was 0.1 percent when it was influenced by demand.
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Trader disclosure: On Feb. 24, 2012, 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 AAPL call spreads; Najarian is long IBM call spreads; Najarian is long CRM call spreads; Najarian is long SODA call spreads; Najarian is long JCP call spreads; Najarian is long ACI call spreads; Najarian is long FIO call spreads; Najarian is long UTX call spreads; Weiss is long EUO; Weiss is long WLP; Weiss is long QCOM; Weiss is long CHK; Weiss is long HK; Weiss is long KEG; Weiss is long VZ; Weiss is long MDRK; Weiss is short ANR; Weiss is short MT; Weiss is short AAPL puts
For Brian Kelly
Shelter Harbor Capital is long GLD
Shelter Harbor Capital is long TLT
Shelter Harbor Capital is long Treasury bonds
For Patty Edwards
Trutina Financial is long AAPL
Trutina Financial is long JNK
Trutina Financial is long SPDR Gold Trust (GLD)
Trutina Financial is long Excelon (EXC)
Trutina Financial is long PM (personal and for clients)
Trutina Financial is long CBI
For Camilla Sutton
For Dan Dicker
Dicker is long oil
Dicker is long APA
For Mark Moerdler
Accounts over which Bernstein and/or their affiliates exercise investment discretion own more than 1% of the outstanding common stock of the following companies CA / CA Inc, CTXS / Citrix Systems Inc.
Bernstein currently makes a market in the following companies ADBE / Adobe Systems Inc, CTXS / Citrix Systems Inc, MSFT / Microsoft Corp, ORCL / Oracle Corp.
For Dan Binder
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For Chris Ceraso
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For Bill Chappell
SunTrust Robinson Humphrey, Inc. has no disclosures.