In Oil & Companies News 30/09/2016
The “Fast Money” traders debated how to invest in the energy sector as oil rallied on the back of an OPEC production limit agreement on Wednesday.
Trader Guy Adami said oil prices and companies like Anadarko Petroleum could continue to see gains through the rest of the week. He said the refiners “are probably dead money for a little bit.”
Trader Karen Finerman agreed and said there’s probably more room to run for Anadarko.
Trader Tim Seymour said investors should look for companies with “impaired balance sheets because they’re the ones that have the most to gain.” He said it’s probably better to avoid big integrated oil companies. Instead, investors should look at the VanEck Vectors Oil Services ETF, Seymour said.
Trader Brian Kelly also said that the oil services ETF is a good choice. He said it’s “the greatest risk-reward in the oil space out there right now.” He said if the ETF dips below $26, it would be a great buy. It closed at $28.10 on Wednesday.
Source: CNBC
