NEW YORK (TheStreet) -- The S&P 500 rose 0.36% and brent crude oil hit 17-month lows.
On CNBC's "Fast Money" TV show, the trading panel took a look at the energy sector.
Guy Adami, managing director of stockmonster.com, said demand for oil appears to be decreasing, possibly because the global economy isn't as strong as previously thought. If this is true, interest rates are likely to move lower. He likes select energy companies such as Exxon Mobil (XOM) and Anadarko Petroleum (APC) on the long side.
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Dan Nathan, co-founder and editor of riskreversal.com, said a short-term bottom may soon reveal itself in the energy sector because it is too oversold. The same can be said for commodities.
Jon Najarian, co-founder of optionmonster.com and trademonster.com, said the U.S. is the largest energy consumer, but is meeting that demand with its own supply. However, the rest of the world appears to have lower oil demand, which is hurting oil prices.
Karen Finerman, president of Metropolitan Capital Advisors, suggested that alternative fuels and more efficient products and vehicles could also be contributing to the weaker demand.
Dennis Gartman, editor and publisher of The Gartman Letter, said WTI crude oil seems likely to decline to $85 per barrel. He added Brent crude oil could decline even further than WTI crude. He attributed the issue to too much supply and not enough demand. He reasoned that the U.S. dollar will continue to move higher, which won't help commodities such as oil.
Adami argued the energy sector appears to be oversold. He added that airline stocks should see an advantage due to lower fuel costs. Finerman said she believes the back-to-school season has been strong for retailers, but lower fuel costs should help, too.
Najarian pointed out the bullish options activity in shares of Noble Energy (NBL) , specifically in the October $29 call options. He is long the stock.