Traders Shrug Off False Saudi Oil Pipeline Report

Thursday, 1 Mar 2012 | 6:43 PM ET

Word of a Saudi oil pipeline explosion — later discredited — spooked investors, but the “Fast Money” traders on Thursday weren’t concerned that the pricing effect would last.

Trader Joe Terranova called the rumor’s timing “interesting.”

“It comes out when the electronic session is relatively light. The sellers have basically stepped to the sidelines. It’s very easy to move it higher,” he said. “I wonder if we’ll ever get to the bottom of it.”

S&P 1700 in 2012?
The update on oil's surge on rumors of a pipeline explosion in Saudi Arabia, with the Fast Money crew. Also, two super-bullish reports out today calling for the S&P to hit 1700 later this year, driven by fundamentals. Are the catalysts in place to push the S&P to those levels? Discussing the oil & gas boom; improving outlook on housing, and the dip in unemployment, with the Fast Money traders. And, checking the charts to see if technical indicators support the bullish outlook, with Jeff Weiss, Tejas Securities technical analyst.

Brent crude briefly spiked to $128.40 per barrel, while WTI hit $108.82 before retreating.

Meanwhile, the S&P 500 closed at 1,374.09, up 0.6 percent.

Tim Seymour of EmergingMoney.com said that the pipeline explosion report — which a Saudi official later called false — probably didn’t concern many people because it purportedly took place outside of an actual trouble area such as Libya, Sudan on Iran.

“The reality is that the world cannot hold on to $130 oil and be OK,” he said.

To trader Brian Kelly, the lack of panic was telling.

“You know what was actually surprising about this, though? You saw oil starting to rise, and the stock market just did not pay attention to it whatsoever,” he said. “Really, nobody seemed to care.”

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Trader disclosure: On March 1, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Adami is long ( C); Adami is long (GS); Adami is long (INTC); Adami is long (AGU); Adami is long (MSFT); Adami is long (NUE); Adami is long (BTU); Kelly is long (XLF); Kelly is long (KRE); Kelly is long (SPY) Puts; Kelly is short Japanese yen

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Piper Jaffray makes a market in the securities of the following companies, and will buy and sell the securities of these companies on a principal basis: AEO, ANF, ARO, BODY, CROX, CTRN, DECK, GCO, GES, GIII, GMAN, GPS, HOTT, KORS, KSS, PSUN, ROST, RUE, SKUL, TGT, WTSLA, ZUMZ

Piper Jaffray or its affiliates beneficially own 1% or more of any class of common equities of the following companies: JCP

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