$100 Back On The Table


With crude oil closing in on the $100 mark, what are the implications for the economy and your stocks?

If not Wednesday, you can bet that $100 oil will be here on Friday. That’s what John Kilduff, an analyst at MF Global, told Fast Money.

This time, it’s not about demand, or the declining U.S. dollar, or geopolitical tensions, either. Kilduff called a “lack of liquidity” the reason why oil markets are likely to see $100 in the coming days. He thinks crude will top out around $108 to $110.

The cost of a barrel of oil has little meaning in and of itself, Jeff Macke said. But when it trickles down to gas prices, that’s where the problems start for the consumer. Indeed, the crack spread between oil costs and gas prices is closing – gas prices are creeping up around the country and the consumer looks like it is rolling over anyway, Jeff said. The last thing people need is another negative headline about high oil prices.

Guy Adami recommended a refiner like Tesoro (TSO) as a play on record oil. After all, if anyone benefits from increased oil prices, it’s the companies that manufacture it into gasoline and sell it to the commercial oil companies.


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Trader disclosure: On Nov. 20, 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 (YHOO), (EMC); Najarian Owns (AMTD) Options; (GOOG) Options; (YHOO) Options; Finerman's Firm And Finerman Own (GS), (KFT); Finerman's Firm Owns (SKS), (TSO), (WMT), (LTD), (CROX), Finerman's Firm Owns (MSFT) Options; Finerman's Firm Is Short (SPY), (IWM), (IYR), (IJR), (MDY), (LEN); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns (HD) And (HD) Puts, Finerman Owns (HD); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts