'Fast Money' Recap: Opening the Oil Spigot?
NEW YORK (TheStreet) -- WTI crude oil finished slightly lower on Monday while the S&P 500 eked out a slight gain of 0.08%.
On CNBC's "Fast Money" TV show, the trading panel took a look at the possibilities of the U.S. releasing some of its oil reserves to combat the rising price of crude oil.
Steve Grasso, director of institutional sales at Stuart Frankel, said that WTI crude oil seems to be hitting a temporary "ceiling" near current levels, at $106 per barrel. He added that a release of oil reserves will only help keep oil prices lower in the short-term. He is a buyer of Cheniere Energy (LNG), while Valero Energy (VLO) appears to be "rolling over" to the downside.
Tim Seymour, managing partner of Triogem Asset Management, said the spread (or difference in price) between WTI crude oil and brent crude oil is likely to widen. He added that increased oil demand in the second half of 2014 will push oil prices higher. He is a buyer of Hess (HES).Karen Finerman, president of Metropolitan Capital Advisors, said it is "way, way too early" for the U.S. to consider releasing oil reserves. She reasoned that $106 per barrel used to be considered expensive, but it is not anymore. Guy Adami, managing director of stockmonster.com, said the U.S. government should consider adding to its reserves with crude oil prices at current levels, not selling it. He is a buyer of ConocoPhillips (COP). Martin Pyykkonen, senior analyst at Rosenblatt Securities, was a guest on the show. He said a lot of Yahoo!'s (YHOO) future rides on the valuation of e-commerce giant Alibaba, in which Yahoo! has a 22.6% stake in. The company plans on selling 10% of its stake in the IPO, with many analysts expecting Alibaba to be worth at least $150 billion. However, based on its recent growth numbers - which disappointed investors - the valuation could be lower than that. He concluded that Alibaba still has "solid" growth, despite the rate of growth slowing. Grasso said he is still long 20% of his original investment in Yahoo! and "assumes" it will trade higher as the IPO of Alibaba approaches. Finerman is long shares of Softbank, which has a significant stake in Alibaba. She reiterated that Alibaba's growth is not slowing, only the rate of growth is slowing, which is something to expect from all large companies.
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