Oil blew past $122 after a Goldman Sachs analyst predicted a “super spike” in the next two years. Is this the new normal for crude?
Independent oil trader Joe Terranova couldn’t be more bullish on oil. This is an issue of supply, he said. As long as supply stays relatively limited, the energy trade should remain easy, as far as he is concerned. “You’re either long of oil or you’re not playing the game.”
Terranova’s bullishness also translates to natural gas, where he predicts a volatile summer for prices as demand increases overseas.
On oil, Jeff Macke said that the price point matters less than how we get there. While the move in crude has been quick, consumers are adjusting to prices on the fly. Prices are so elastic that Macke believes the consumer will grin and bear it as long as it’s relatively gradual.
>Next Stop For Oil
>$200 Oil Possible?! Vote Now> Options Action: Crude Oil
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Trader disclosure: On May 6, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (C), (GS), (INTC), (MSFT), (NUE), (BTU), (AGU); Najarian Owns (AAPL), (TSO), (XLF); Najarian Owns (BSC) Calls, (BUD) Calls, (CSCO) Calls, (EP) Calls, (MSFT) Calls, (YHOO) Calls, ( C) Calls; Macke Owns (DIS), (INTC), (MSFT); Finerman Owns (GS); Finerman's Firm And Finerman Own (HD), (KALU); Finerman's Firm Owns (MSFT), (NYX), (PLCE), (TSO), (VLO), (JCP), (AEO); Finerman's Firm Owns (YHOO) And (YHOO) Call Spreads; Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Finerman's Firm Is Short The British Pound; Charles Schwab Is A Sponsor Of "Fast Money"; WWE Programs Air On Networks Of NBC Universal, The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC
Terranova Owns (FXC), Crude Oil, Natural Gas