Oil Sector Stocks With Upside Potential

As crude oil prices declined Tuesday, the “Fast Money” traders staked their positions within different sectors of the industry.

Brent crude traded at $122.27 midday, down $1.53. WTI slipped 1.7 percent to $104.87.

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Simon Baker of Baker Street Asset Management liked the offshore oil drilling companies, particularly Diamond Offshore .

Patty Edwards of Trutina Financial liked the suppliers and pipeline plays: Schlumberger and Kinder Morgan, which also paid a dividend.

Jon Najarian of OptionMonster.com picked Holly Energy Partners.

“I think they might do pretty well going forward,” he said.

OptionMonster.com cofounder Pete Najarian doubled down on ConocoPhillips, which climbed 7 percent in the past month and has a 3½ percent dividend yield.

“I think it continues to outperform,” he said.

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Trader disclosure: On March 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: P. Najarian is long AAPL; P. Najarian is long C; P. Najarian is long INTC; P. Najarian is long YHOO; P. Najarian is long COP; P. Najarian is long WLT; J. Najarian is long IBM call spreads; J. Najarian is long QCOM call spreads; J. Najarian is long GDX call spreads; J. Najarian is long GDXJ call spreads; J. Najarian is long CRM call spreads; J. Najarian is long FIO call spreads; J. Najarian is long KERX call spreads; Baker is long QCOM; Baker is long GLD; Baker is long SLV; Baker is long MU; Kilburg is long 10yr; Kilburg is long TLT; Kilburg is long GLD; Kilburg is long SPXU; Karabell is long VALE

For Patty Edwards
Trutina Financial is long COST

Trutina Financial is long AAPL

Trutina Financial is long JNK

Trutina Financial is long INTC

Trutina Financial is long QCOM

Trutina Financial is long HLF

Trutina Financial is long WLT

For John Blackledge
I, John Blackledge, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.

For Paul Forward
CONSOL Energy Inc. is provided with investment banking services by Stifel, Nicolaus & Company, Inc. or was provided with investment banking services by Stifel Nicolaus or an affiliate within the past 12 months.

CONSOL Energy Inc. is provided with non-securities related services by Stifel, Nicolaus & Company, Inc. or an affiliate or was provided with non-securities related services by Stifel Nicolaus or an affiliate within the past 12 months.

Stifel, Nicolaus & Company, Inc or an affiliate has received compensation for investment banking services from CONSOL Energy Inc. in the past 12 months.

Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services from CONSOL Energy Inc. in the next 3 months.

Stifel, Nicolaus & Company, Inc. makes a market in the securities of CONSOL Energy Inc..