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Brazil Strikes Oil Jackpot

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A giant oil field just discovered off the coast of Rio de Janeiro could give Brazil the world’s eighth largest oil reserves. What’s the trade?

Investors haven’t paid enough attention to the oil discovery in the Tupi field located 180 miles off the coast of Rio de Janeiro says Tim Seymour on CNBC’s "Closing Bell”.

Petrobras (PBR) found anywhere between 5-8 billion barrels which would almost double Brazil’s output, he adds And there’s talk it could be up to 20 billion barrels. This is a fantastic discovery!

Also it has big implications for Brazil. It could vault them, into the top 10 oil producing nations in the world when it comes online, in only a few years.

He adds, another way to play the discovery is to buy the iShares MSCI Brazil Index (EWZ) (becuase 12% of the fund is made-up of PBR.) It’s pulled back a little Friday so you can buy the dip.

Of course, you have to be prepared for volatility in Brazil or any emerging markets.

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Trader disclosure: On Nov. 9, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (C) Options, (CSCO) Options, (GOOG) Options, (GS) Options, (XLF) Options (YHOO) Options; Finerman's Firm And Finerman Own (GS), (HD), (KALU); Finerman's Firm Owns (WMT), (BEAS), (KSS); Finerman's Firm Is Short (LEH), (MBI), (SPY), (IYR), (IJR), (IWM); Finerman's Firm Owns (BIIB) Options; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Seygem Asset Management Owns (AAPL), (CSCO), (EEM), (F), (GLD), (MER), (SBUX), (X), (YHOO), (MSFT),Gazprom