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Oil Outlook

Oil rose to within $2 bucks of a record before an OPEC meeting Tuesday in Vienna. What will the all-powerful OPEC say and are oil and oil related stocks a buy on the meeting?

Strategic investors Dennis Gartman, author of The Gartman Letter joins the panel. Here are excerpts from what was said.

What’s going on?

“The oil Minister from Saudi Arabia,” explains Gartman “who can usually be counted on to leak information has been absolutely non-committal. That’s unusual.”

How do you interpret that?

“I interpret that to mean he may want to surprise everybody and increase production,” says Gartman.

Is the market (and are you) trading around that speculation?

“I’m not sure a lot of people are aware that (Saudi Arabia) has been this quiet,” says Gartman.

He adds “I’m long crude oil by being long Suncor (SU). When I’m bullish on crude I buy Suncor but I must admit that I’m a little concerned by this unusual circumstance. One learns in this business to watch for the unusual.”

Which sector in oil do you like best?

“The services have been best for the past couple months,” says Gartman. “And I see every reason to think they shall continue. If you’re going to be long that’s probably the place to be long.”

He adds, “If I was starting out and had no position I would probably go to the Flow Tech (FTI) and other service provides.

Turning attention to agriculture, what’s happening in the grain markets?

“We’re simply not producing enough wheat… and the world needs wheat,” says Gartman. “The US and Canada are the only suppliers (now) so the wheat market has gone to $3.50 a bushel to almost $9 a bushel.”

He adds “Supply is weak and demand is strong.”

Dylan Ratigan explains one of the few ways to play wheat is through an agriculture ETF traded in London under the symbol DBA.

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Trader disclosure: On Sept. 10, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;
Make Owns (ATVI), (DIS), (INTC), (HAS); (EMC), Najarian Owns (VMW); Najarian Is Short (GS); Finerman's Firm Owns (COP); Finerman's Firm Owns S&P 500 Futures; Finerman's Firm Owns Russell 2000 Futures

Gartman Owns Crude Oil; Gartman Owns Wheat; Gartman Owns Suncor Energy