Pro Trader Fading Oil’s Spike

On Friday many investors were asking how high oil prices would go, after crude spiked near $108 per barrel following a report that Iranian oil exports dropped significantly this month.

The report said Iran's shipments have tumbled by 300,000 barrels per day, or 14 percent, in March.

Although that may sound bullish (lower supply), top energy pro Dan Dicker tells us, it’s actually bearish.

He explains that pros see these developments as a sign that sanctions are starting to have an impact. “They’re dropping the amount of credit and money going into development and production in Iran,” Dicker says.

If sanctions are working, then diplomacy is working.

And if diplomacy is working, military action becomes incrementally less likely. In turn, that calls into question the premium already factored into the price of oil.

“I’m taking off my long positions,” Dicker says.

Energy trade Joe Terranova agrees. “Diplomacy is now front and center.”

* You can find our conversation with Dan Dicker about 3 minutes into the video clip above.

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Trader disclosure: On Mar 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long NXPI; Joe Terranova is long IBM; Joe Terranova is long MCD; Joe Terranova is long EMC; Joe Terranova is long MSFT; Joe Terranova is long JOY; Joe Terranova is long OXY; Joe Terranova is long LQD; Joe Terranova is long POT; Joe Terranova is long TBT; Steven Weiss is long JPM; Steven Weiss is long SNDK; Steven Weiss is long BRCM; Steven Weiss is long QCOM; Steven Weiss is long BAC; Steven Weiss is long NAV; Steven Weiss is long WLP; Steven Weiss is long HAIN; Steven Weiss is long TBT; Steven Weiss is long TBF; Steven Weiss is short X; Steven Weiss is short FXA; Steven Weiss is short FCP; Steve Grasso is long ANR; Steve Grasso is long ASTM; Steve Grasso is long AVAV; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long MHY; Steve Grasso is long NUAN; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long PRST; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Patty Edwards is long for clients AAPL; Patty Edwards is long for clients BKCC; Patty Edwards is long for clients JWN; Patty Edwards is long for clients GLD; Patty Edwards is long for clients ED; Patty Edwards is long for clients EXC; Patty Edwards is long for clients INTC; Patty Edwards is long for clients JOY; Patty Edwards is long for clients SBUX; Patty Edwards is long for clients VLO; Patty Edwards is long for clients AMZN; Patty Edwards is long for clients NKE; Patty Edwards is long for clients HLF; Patty Edwards is long for clients PM; Patty Edwards is long for clients CBI; Patty Edwards is long PM

Dan Dicker
Dan Dicker is long RDS
Dan Dicker is long BHI

Nicole Miller Regan
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