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Gartman: Brent Versus WTI Spread to Increase

With the market held hostage by the price action in oil, you’d best hear from commodities expert Dennis Gartman. What should you expect?

Ahead of the broadcast, Gartman tells our producers that he’s very focused on events in Iraq. As you may know over the weekend, gunmen stormed Iraq's largest oil refinery and bombed the facility, forcing operations to shut down.

The attack north of Baghdad casts doubt on the Iraqi government's ability to protect its vital infrastructure.

To Gartman events suggest that Brent, which trades closer to the action, will continue to command a premium.
As a result the spread between Brent and WTI will likely increase.

But dive into this trade and you’re swimming in the deep end of the pool.

”The only real way to play it is with the futures. Be long the front contract Brent and short the back contract in WTI,” Gartman says.

If shorting WTI contracts is a little elevated for you, Joe Terranova has a few other ideas. He suggests looking into Canada or Russia.

"And in addition look at big balance sheet energy names," he says. "ConocoPhillips and Chevron are both near 52-week highs."





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Trader disclosure: On Feb 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (F); Seymour owns (FXI); Seymour owns (GE); Seymour owns (POT); Seymour's firm owns (TTM); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's firm is short (XRT); Finerman's firm is short (IJR); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (BBY); Finerman's Firm And Finerman Own (BP); Finerman owns (C); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's firm owns (M); Finerman's Firm And Finerman Own (MSFT); Finerman's firm owns (TGT); Finerman's Firm Owns (WMT); Terranova owns (VRTS); Terranova owns (C); Terranova owns (UPL); Terranova owns (ABT); Terranova owns (MS); Terranova owns (PBR); Terranova owns (BAX); Terranova owns (TEVA); Terranova owns (CVI); Terranova owns (RSX); Terranova owns (SU); Terranova owns (CNQ)

For Joe Terranova
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For Brian Kelly
Accounts Managed By Kanundrum Capital Own (EBAY)
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Accounts Managed By Kanundrum Capital are long the Euro
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For Dennis Gartman
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