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5 stocks to buy on oil's high supply

As an international framework agreement on Iran's nuclear program stirred an already volatile oil sector, some CNBC "Fast Money" traders looked to the United States for opportunities.

"Back to the U.S. is how you play it," said trader Tim Seymour.

Global benchmark Brent crude oil slipped 3 percent on Thursday as major world powers and Iran announced a tentative agreement on reining in Iran's nuclear program, pending official approval after further talks. If implemented, the deal could lead to the U.S. and European Union easing some sanctions on Iran, releasing more oil into the market.

An oil well owned an operated by Apache Corp. in the Permian Basin, Garden City, Texas.
Getty Images
An oil well owned an operated by Apache Corp. in the Permian Basin, Garden City, Texas.

Seymour eyed American exploration and production names on the potential for more supply. He believes Hess and Anadarko Petroleum have particularly strong balance sheets and can withstand choppy oil trading.

Read MoreIran talks: Agreement reached on key parameters

Hess closed barely positive on Thursday, while Anadarko climbed nearly 1 percent.

Trader Guy Adami looked to Tesoro, an American refiner rather than producer. Tesoro has jumped about 17 percent this year as the spread between U.S. WTI crude and Brent sits at about $6 per barrel.

Tesoro shares fell more than 5 percent Thursday, and Adami believes the drop offers a good entry point.

A sustained high supply environment will benefit tanker stocks, said trader Karen Finerman. She noted that shipping company Navios looked appealing after it "popped up nicely" on Thursday.

Read MoreOil may strengthen, then hit new lows: Gartman

Shares in Navios closed nearly 6 percent higher on the day.

Individual stocks are likely a risky way to play oil, trader David Seaburg said. He eyed the SPDR S&P Oil and Gas Exploration and Production ETF, which climbed more than 1 percent on Thursday.

Disclosures:

Tim Seymour

Tim Seymour is long T, BAC, C, DIS, F, GE, GM, GOOGL, INTC, LO, EWZ and SUNE. Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX and YNDX.

Karen Finerman

Karen Finerman is long BABA, BAC, C, FINL, FL, GOOG, GOOGL, JPM, M, KORS, she is short DIA, her firm is long ANTM, AAPL, BAC, C, CMLS, DIS, FINL, FBT, FL, GOOG, GOOGL, IBB, JPM, M, OIH, KORS, XBI, SUNE, URI, her firm is long calls URI, her firm is short IWM, SPY, USO, Karen Finerman is on the board of GrafTech International.

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.