"Halftime Report" trader Joe Terranova, currently in second place in CNBC's Halftime Report Model Portfolio competition, made a trade that will benefit from the oil supply glut in Cushing, Okahoma, the hub for WTI crude.
"People are going to have to get rid of all that oil some time," said the trader.
Terranova, who built up an expertise in oil when he worked for Mark Fisher of MBF Clearing Corp. at the New York Mercantile Exchange, points out that the spread between WTI and Brent crude, the European benchmark, is telling us something. European oil is not falling as fast as WTI so the spread between the two has widened to $10 a barrel. Earlier this year, Brent was actually cheaper than the U.S. benchmark.