Amanda Kurzendoerfer, commodity analyst at Summit Energy, told CNBC’s “Squawk on the Street” that the surprisingly large drop in gasoline supplies and low refinery capacity could send prices at the pump over $3 a gallon by mid-July.
“We could see a three handle,” Kurzendoerfer said Wednesday. “I don’t think it will last long, but it definitely a possibility.”
The U.S. Energy Information Administration reported that crude oil inventories rose 4.3 million barrels last month, but gasoline supplies fell five million barrels. Refinery capacity remains unchanged at 87%.
“The crude oil number is great for crude oil stocks--that’s a huge build,” she said. “Unfortunately, that gasoline draw is just enormous and I think that will steal the show here today. As we look toward the summer, gasoline becomes the big focus.”
She said the “terror premium” continues to add a “few dollars” to the price of oil, despite the release of the British sailors seized by Iran.