Joe Terranova's Energy Trade (SUN, TSO, VLO, XLE, XLY)

CNBC's Fast Money's Joe Terranova suggested investors to look at some energy stocks as oil traded up today on the news of the bigger demand.

Joe Terranova thinks that investors should go long on Sunoco, Inc. (NYSE: SUN), Tesoro Corporation (NYSE: TSO) or Valero Energy Corporation (NYSE: VLO) because of a positive momentum in the sector.

Alternatively, he suggests a pairs trade. You should take a long position in Energy Select Sector SPDR (ETF)
(NYSE: XLE) and short position in Consumer Discretionary SPDR (ETF) (NYSE: XLY) as a bet that higher oil prices at the pump will hurt the consumer.

Sunoco (SUN) spiked 3.64% today, while Tesoro (TSO) and Valero (VLO) surged 4.28% and 5.07% respectively. XLE gained 0.88% and XLY jumped 0.35%.