Oil Takes a Breather - Fast Money Recap (5/22/08)

Recap of CNBC's Fast Money, Thursday May 22.


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Oil Backs Down: Exxon Mobil (XOM), Petrobras (PBR), PowerShares DB Commodity Index (DBC)

With oil heading back down to $130, Jeff Macke would not call a top in oil and thinks the commodity will resume its upward climb. Guy Adami thinks investors will be afraid of holding long positions in oil over the long weekend, and while he doesn’t see a large number of shorts, he expects selling. Tim Seymour observes U.S. consumption is down, there are internal problems with XOM and the chart is unstable. John Najarian says a top can be called when a stock fails to rise on good news, and notes oil was down in spite of predictions of a further rise. He discussed aggressive put activity in DBC which is 60% comprised of oil. However, given the fact that oil is mainly driven by rising demand, he would not short oil.