Pain At The Pump - For Big Oil
$90 crude may lead BP (BP) and Exxon (XOM) to report their first profit decline in 5 years. Why?
Dylan Ratigan explains that the price of crude oil has gone up while gas prices have stayed stable. That hurts the refiners margins.
Karen Finerman thinks the trade is shorting the tanker stocks such as Teekay Corp (TK). Tanker rates are falling off a cliff, she says and the stocks will likely go down, Finerman predicts.
Pete Najarian is intrigued by the trade.
Guy Adami tells the panel that he expects Exxon Mobil to miss on November 1st and traders who have gotten long XOM because crude jumped will become very unhappy, he says. Adami anticipates that XOM will trade with an 86-handle by the end of this week!
Pain At The Pump - For Big Oil
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| -- | -- | -- | -- | -- |
| TK | Teekay Corp | 9.23 | +0.07 | +0.76% |
| XOM | Exxon Mobil Corp | 119.64 | +1.77 | +1.50% |
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Trader disclosure: On Oct 22, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (HAS), (INTC), (ATVI); Najarian Owns (AAPL), (GOOG), (NDAQ), (RACK), (YHOO) (CY); Finerman Owns (GS), (COV); Finerman's Firm Owns (ASD), (CTX), (MO), (NYX), (NMX), (WMT), (MSFT), (MDC), (TGT); Finerman's Firm And Finerman Own (HD), (KFT); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts