Oil refiner stocks make a strong commodity play amid crude oil's rout, CNBC "Fast Money" trader Jon Najarian said on Thursday.
"We're going to have an oversupply situation for quite a while. That's good if you're a refiner," he said.
Sustained oversupply and a strengthening dollar relative to key global currencies have pressured U.S. crude prices this year. The commodity has shed nearly 20 percent year-to-date and more than 50 percent in the last 12 months.
CNBC "Fast Money" traders discussed how to trade oil's continued weakness.
Najarian pointed to four refiners that could rally if the low-price environment continues:
Exploration and production
Adami said giants Exxon Mobil and ConocoPhillips showed "false" rallies when they climbed on Wednesday. Exxon and Conoco both fell more than 1 percent on Thursday to sit near $84 and $62 per share, respectively.
"If money starts flowing into someplace, it's going to flow into the commodities," trader Brian Kelly said. He bought the iShares S&P GSCI Commodities-Indexed Trust on Thursday, which tracks futures in a broad range of commodities.
It dropped more than 2 percent on Thursday to sit around $19.
Jon Najarian is long AMAT, BABA, BAC, BMY, BP, CSX, DISCA, FOXA, GE, KKR, KO, LLY, LOCO, MRK, PEP, PFE and SAP. He is long calls AAL, AAPL, AMD, BABA, BAC, BK, CAM, CDW, CLR, COP, DAL, FB, FEYE, GE, GM, GRPN, GS, GT, HCP, HPQ, IAG, JPM, KO, KNDI, KRFT, LYB, MSFT, NEE, PEP, RAD, RF, RIG, RKUS, SPY, SYY, TEVA, UAL, UFS, WFC, WMB and XOM. He is long puts BHP.
Brian Kelly is long BTC=, sold some U.S. dollar, GLD, CTRL calls, GSG, HYG puts, BBRY, BBRY call spreads. He sold some dollar yen, sold some dollar/Canadian dollar, sold copper short, sold EWZ and TLT. He is short yuan. Today, he bought GSG.
Karen Finerman is long BABA, BAC, C, FINL, FL, GOOG, GOOGL, JPM, M, KORS, NAP, LPG and GLNG. She is short DIA. Her firm is long AAPL, BAC, C, CMLS, DIS, FINL, FBT, FL, GLNG, GOOG, GOOGL, IBB, JPM, LPG, LYV, M, OIH, KORS, NAP, XBI, SUNE and URI. Her firm is long calls URI. Her firm is short IWM, SPY and USO. Karen Finerman is on the board of GrafTech International.
Guy Adami is long CELG, EXAS and INTC. Guy Adami's wife, Linda Snow, works at Merck.