If you’re involved in the energy sector, chances are you’re keeping a close eye on the decline in crudeoil .
With prices down more than 8% in only two weeks, investors are trying to determine when the selling pressure will finally ebb.
Top energy trader Dan Dicker of MercBloc tells us he expects oil to find support around $90.
Dicker says it seems that over the past few years summer has been weak for oil due to the same reasons it’s weak this year -- troubles in Europe and concerns about China.
And Dicker thinks a trend will start to emerge. The 2011 low in oil was higher than the 2010 low. And he thinks in 2012 the low in oil will be higher than it was last year.
“I’m looking for $88 - $90,” Dicker says. “If oil trades down to those levels, I’m a buyer of higher beta E&P stocks,” he says.
Trader Joe Terranova says much the same. “I also think oil’s getting close to a bottom,” he tells us after the broadcast. “I think it’s about to get attractive. Not now, but soon.”
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Trader disclosure: On May 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; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long SBUX; Joe Terranova is long UPL; Joe Terranova is long LQD; Joe Terranova is long HPQ; Joe Terranova is long SNDK; Joe Terranova is long NFLX; Joe Terranova is long SJM; Jon Najarian is long call spreads in GRPN; Jon Najarian is long call spreads in YHOO; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in ZNGA; Jon Najarian is long call spreads in MCP; Jon Najarian is long call spreads in UA; Jon Najarian is long CIGX; Jon Najarian is long DDMG; Jon Najarian is long CBOE; Jon Najarian is long CME; Stephen Weiss is long JPM; Stephen Weiss is short BAC; Stephen Weiss is short FCX; Stephen Weiss is short CAT; Stephen Weiss is short CHK; Stephen Weiss is short JCP
For Mark Mahaney
Citigroup is a market maker in GRPN
For John Frankel
Nothing to disclose
For Eric Jackson
Eric Jackson is long YHOO
CNBC.com with wires.
