With the U.S. rig count climbing, oil's dip will likely continue, CNBC "Fast Money" traders said.
"Now we're bringing it back on. Oil is probably going lower," said trader Brian Kelly.
The number of rigs seeking oil and natural gas in the U.S. rose by one this week to 863, Baker Hughes said Friday. Though West Texas Intermediate crude only settled 4 cents lower on Friday, it fell about 5 percent on the week.
Traders looked to plays on the threat of more supply taking down prices even more. Refiners Tesoro and Valero look appealing, as they benefit from a rising spread between WTI and Brent crude, which rose Friday.
Both stocks have climbed more than 30 percent this year. Trader Josh Brown added that Tesoro could eventually hit $120 per share, up from about $98 where it closed Friday.
Falling oil prices also benefit airlines, as gas is a huge cost for carriers. JetBlue—which has risen more than 36 percent this year—could go even higher, Brown said.
Delta Air Lines—which closed nearly 5 percent higher Friday—looks appealing as a possible trade, Kelly added.
JPM July put spread, TJX Aug Put, TWTR, TWTR SEPT call spread, SO, INTC July put, LVS July Aug Put Spread, PG Aug Put, COST Aug put spread, WDAY July call fly, BA Sept put; he is short SO Aug call. Today he bought BA Sept put.
Long AAPL, DE, DNKN, EBAY, FSLR, JMBA, SAM, SHAK, SPWR, TNET, TWTR, XLE, XON.
Brian Kelly is long BBRY, BTC=; TAN, TLT, TSL, Canadian Dollar, Euro; Yuan, and Yen. Today he bought TSL.
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.