Kelly's advice: "Stay short."
On a technical basis, he added, "I would say, at around $70 in WTI, there is some support there."
Karen Finerman of Metropolitan Capital Advisors noted that some of the fundamentals for services companies were "horrific."
With a thin margin on gasoline, CST was a company that made it up on its quick-mart side.
"When people save at the pump, they spend half of that savings in the convenience store, where the margins are 30-plus percent," Finerman said.
Dan Nathan of RiskRevesal.com said oil's trouble was likely a combination of demand and supply problems, adding that it has traded within a tight range over the past five or six years.
"I know that it's just come in pretty dramatically in a short period of time, but I'm looking at a chart here from 2011. It's really been between $120 and $80," he said. "Now we're at the low end of it. And I just remember back in 2008 when crude oil went from $140 down to $30. It wasn't a tax break, people. It was a real demand issue. …
"I think the continuation of the horrible price action is going to flow over to other risk assets. I don't know when."