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
For Jeff Weiss
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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
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