'Fast Money' Recap: How Low Can Oil Go Now?

NEW YORK (TheStreet) -- The S&P 500 enjoyed its best August performance in 14 years as the index climbed 0.33% on the final trading day of the month. 

On CNBC's "Fast Money" TV show, the trading panel took a look at oil prices.

Brian Kelly, founder of Brian Kelly Capital, said everyone seems to think WTI crude oil is going to $85 per barrel. He does not agree and thinks it is near the "trough" now. 

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Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said it "wouldn't be a negative" for crude prices to stay near current levels. He likes the iShares U.S. Oil & Gas Exploration & Production ETF (IEO) and Apache (APA) . 

Steve Grasso, director of institutional sales at Stuart Frankel, said support for WTI crude oil is near $92. If the S&P 500 is going to rally into the end of the year, which it seems poised to do, oil prices will likely rally with it. 

Guy Adami, managing director of stockmonster.com, said lower oil prices may help out retail stocks. Specifically, he likes Macy's (M) , Kohl's Corp. (KSS) and Gap (GPS) . 

Grasso added that retail stocks will have easy comparable-store sales figures to beat this fall after last year's poor outing due to the government shutdown. 

Brown said the SPDR S&P Retail ETF (XRT) "is on the verge of a breakout" and has done pretty well over the past few weeks.  

Kelly said investors should watch for natural gas to start rallying heading into the fall and winter. He likes Chesapeake Energy (CHK) . 

James Temple, senior editor at Re/Code, was a guest on the show. On Amazon (AMZN) and Google's (GOOGL) (GOOG) attempt to develop delivery drones, he said the companies are "trying to reinvent the way that distribution happens." This task will include a lot of regulatory and technological hurdles, but could be a very attractive and effective service that hurts traditional brick-and-mortar retailers. 

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If investors are interested in drone technology, they can buy shares of AeroVironment (AVAV) , Kelly said. 

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