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Traders weigh oil stocks amid pullback

The"Fast Money" traders drilled into the oil sector Thursday after reports that OPEC may lengthen its oil production agreement involving non-members and could take other measures to reach global crude inventory targets.

Trader Pete Najarian said he had no qualms with the news and will continue to hold onto stocks he's held for a long time in the area incuding: JP Morgan Alerian, a midstream energy index ETN, and Kinder Morgan. He said oil transportation stocks give him exposure to the industry and pay a good dividend yield.

Trader Guy Adami said he like Exxon Mobil. He said the stock price should increase when oil prices move higher. The stock is down 10 percent in the last two months.

The uncertainty with OPEC and the potential Mexican border tax makes trader Karen Finerman wary of the space. Yet, she said she does like Golar LNG because the stock moves with oil prices but the company is not directly affected by the commodity.

An oil well owned and operated by Apache Corporation in the Permian Basin of Garden City, Texas, on February 5, 2015.
Spencer Platt | Getty Images
An oil well owned and operated by Apache Corporation in the Permian Basin of Garden City, Texas, on February 5, 2015.

Disclosures:

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

Karen Finerman is long AAL, BAC, BAC short calls, C, DAL, FB, FL, GLMP, GOGO, GOOG, GOOGL, JPM, URI, LYV, KORS, KORS calls, KORS puts, MA, SEDG, SPY puts, TACO, WIFI call spreads. Her firm is long ANTM, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, PLCE, SPY puts, WIFI. Her firm is short IWM, MDY. Finerman is on the board of GrafTech International.

Pete Najarian owns calls: AAL, AMJ, AKS, BVN, BZH, C, CCL, CSCO, CHK, CLF COP, CRM, ETP, GE, GDX, GLD, GILD, IBN, INTC, JBLU, HUM, HMY, KORS, KMB, MT, MTW, P, PAA, POT, RIO, SVU, SV, UAL, UNP, WFT, WLL, WY, WLC, GLD, UUP, ZIO, long stock: AAPL, BAC, BLL, DLTR, DIS, EBAY, GILD, GM, HAIN, HD, HUM, IBM, INTC, JWN, K, KMI.A, KO,KORS, LUX, MOS, MSFT, MRK, MRVL, RW, RHT, puts: PJC.

Dan Nathan is long XLV March put spread, XLI Feb put spread, FXI Feb put spread.