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How to trade crude oil's downward spiral

After another hit to oil prices Monday, "Fast Money" traders shied away from energy stocks.

U.S. crude oil futures settled 5.8 percent lower at $37.65 a barrel, the lowest since 2009. The commodity's price has now fallen about 37 percent this year.

Prices should fall even more, and investors should avoid big-cap oil names in that environment, said trader Guy Adami. He pointed to energy giants Exxon Mobil and Chevron, which both closed more than 2.5 percent lower on the day.

However, some refiner stocks like Tesoro and Valero have climbed amid low oil prices, and that trend could continue, he added.

Cheniere Energy

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Amid Monday's slide for oil and natural gas prices, activist investor Carl Icahn reportedly increased his stake in struggling Cheniere Energy. While it may make a good investment in the future, Cheniere could have "a lot more downside," said trader David Seaburg.

The stock has fallen about 40 percent this year. Trader Dan Nathan added that investors should not buy into the company because of Icahn increasing his position.

JetBlue; U.S. dollar

Shares of airline JetBlue jumped about 4 percent Monday, as oil is a crucial input cost. Adami contended that the stock has more upside despite gains of 67 percent already this year.

Separately, Nathan sees the U.S. dollar rising as crude oil continues lower. He noted that the Federal Reserve's potential decision to raise interest rates later this month could give the dollar more of a boost.

Disclosures:

Guy Adami

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

Dan Nathan

Long PFE buy-write, SOLD SOME TWTR & Long March Risk Reversal, long IWM Dec Put Spread, Long UUP call spread, Long XLU Dec Call Spread, Long PYPL Jan Risk Reversal, Long M Jan16 52.50 / 62.50 call spread, Long INTC Dec Put Spread, Long XLF Dec put spread, Long NTAP risk reversal, GM Long Jan Put Butterfly

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc