As oil surpasses $135 for the first time you know who benefits – but who's the biggest loser?
As far as Jon Najarian is concerned, the U.S. casino business is in the biggest trouble. The economic downturn is already hurting casinos and high oil as it relates to the airlines is going to be crippling for the industry as people rethink their summer vacations to Vegas, he said.
It’s ironic in a way, but according to Tim Seymour, certain oil companies are going to have the hardest time coping with $135 crude. A company like PetroChina , that produces a refined product which it then has to subsidize to a local market, is going to suffer, he said.
How about the high-end steakhouses? Guy Adami offered. Who is driving to Morton’s or Ruth’s Chris for an expensive meal when the gas it takes them to get there could be more expensive? These stocks have already been crushed, but he expects the pain to intensify.
Jeff Macke offered rental car giant Hertz as one of the biggest losers of $135 oil. The summer travel season is going to be worse than people think, he said. It will be “abysmal.” If no one is flying, certainly no one is renting cars, he said.
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Trader disclosure: On May 22, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (C), (GS), (AGU), (NUE), (BTU), (INTC), (MSFT); Macke Owns (ATVI), (MSFT), (DIS), (INTC), (WMT); Jon Najarian Owns (AAPL), (AMR), (BHI), (BNI), (C), (CRM), (FRO), (WMT). (WLP), (FTEK); Jon Najarian Is Short (DBC), (DKS); Seymour Owns (AAPL), (CSCO), (F), (INTC), (MER), (MS), (TSO)