Terranova's Crude Moves


With oil prices hovering near $50 a barrel, is crude about to break out and start its next march higher?

In support of their thesis, oil bulls often point to the nearly limitless energy demand that could be generated by emerging markets as they resume building and growing. They say it's just a matter of time.

But the time probably isn't now. In fact, on Wednesday the World Bank cut its 2009 forecast for China's economic growth.

What's the trade?

Fast Money trader Joe Terranova has some plays -- crude moves if you will!

He thinks the way to play energy is with the integrated oil names such as Exxon, ConocoPhillips and Chevron. In the past he’s explained that these firms can be very profitable with oil prices where they are -- right now.

And don’t look for $147 oil like we had last year. That’s just not in the cards.

Mike Wittner, global head of oil research at Societe Generale says oil prices are probably near the top of their range. "I don't see any reason fundamentally why we should break out of this range to the upside," he says. "The picture remains the same: weak economy, weak oil demand."

Terreanova concurs. “Oil at $50 is a little worrisome,” he says. “I would look away from the commodity itself as well as the USO .”

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