A low price range in crude oil has solidified, leading commodities trader Mark Fisher said Wednesday.
“I think the floor in oil is set pretty much around the $95 level. I think you’d want to own oil down there, so just collect the income,” he said on “Fast Money.”
“Every time there’s a scare and the market gets flushed for one reason or another, sell some puts and just collect the income every month, and I think that’s the easiest way to play the oil market,” he added.
Brent crude traded at $126 per barrel midday. WTI was at $106.24, down 47 cents.
Fisher acknowledged instability in the Middle East but saw potential headwinds elsewhere, as well.
“I think that the real disruption is not going to be in oil but in the products — in gasoline and in heating oil — so to me, the refinery play and being long the cracks is probably a better risk-reward play than just being long oil above $110 if it gets there,” he said.
Earlier, Fisher also defended MBF Clearing against a lawsuit filed by the U.S. Commodities Trading Commission.
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Trader disclosure: On March 14, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Weiss is long RAD; Weiss is long DMND; Weiss is long JPM; Weiss is long BAC; Weiss is long JCP; Weiss is long QCOM; Weiss is long HK; Weiss is long WLP; Weiss is long TBF; Weiss is long TBT; Weiss is short ANR; Weiss is short MT; Weiss is short FCX; Weiss is short AAPL Puts
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