Oil bounced back above $80 and brought the oil service stocks with it. Are names like Halliburton (HAL) and Schlumberger (SLB) the best way to play crude’s volatility?
Demand forecasts for oil are changing all over the world. Countries in Asia and Eastern Europe are increasing their demand, and companies with good growth prospects in that region are poised to prosper, Tim Seymour says. He likes Halliburton and Baker-Hughes (BHI), which have operations in Russia and the Caspian Sea area.
It isn’t just the stocks. The options activity in the oil services names has been explosive as well, Pete Najarian says. While integrated oil and refineries have struggled, the services are going full-speed ahead in the options pits. BHI is experiencing especially wild options volume, he says.
Carter Worth recommends staying away from the “extended” Schlumberger, and, by extension, the Oil Services ETF (OIH), because it is heavily weighted in SLB. Instead, he likes the trades in Halliburton and BHI.
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Trader disclosure: On Oct 8, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders
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