NEW YORK (TheStreet) -- West Texas Intermediate crude declined to $63.21 a barrel early Monday before reversing course and climbing to over $69 a barrel.
Exxon Mobil (XOM) traded well, too, climbing 2%, Guy Adami, managing director of stockmonster.com, said on CNBC's "Fast Money." Transocean (RIG) will likely need to cut its dividend. The knee-jerk reaction will be to the downside, which could present a buying opportunity, he said.
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The leadership in Exxon Mobil, Schlumberger (SLB) and Chevron (CVX) shows investors are looking for safety, not risk in the energy sector, according to Steve Grasso, director of institutional sales at Stuart Frankel. He said to sell rallies in stocks such as Whiting Petroleum (WLL) .
Once oil prices start to move higher, there should be less pressure on shares of Tesla Motors (TSLA) , said Dan Nathan, co-founder and editor of riskreversal.com. Solar stocks should also get a bounce once oil moves higher.
Karen Finerman, president of Metropolitan Capital Advisors, had a less direct way to play energy: Cullen Frost Bankers (CFR) . The company has a lot of exposure to oil and is a solid short-sell candidate given its high valuation.
The U.S. will have too much oil supply next year, according to Paul Sankey, managing director at Wolfe Research. Spending cuts will therefore drive down production growth next year, he said. Long-term investors should buy stocks like ConocoPhillips (COP) , EOG Resources (EOG) and Hess (HES) . Short-term traders should avoid energy stocks on the long side.
Oil wasn't the only volatile asset on Monday. Shares of Apple (AAPL) slid over 6% within only a few minutes in early Monday trading. The stock eventually recovered but still closed lower by 3.3%.
A lot of investors probably felt pressure to take profits in Apple since it was up 48% year to date before Monday's trading session. However, that is likely the wrong move, said Brian Blair, senior research analyst at Rosenblatt Securities. The company is likely to see a very strong fourth quarter due to the holidays and top analysts' estimates in the first quarter from sales in Asia.