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Energy Data Fuels Profit-Taking

Wednesday, 16 May 2007 | 2:08 PM ET

Surprising energy data sent oil prices into negative territory Wednesday morning. Bruno Stanziale, a principal in commodities sales for Bank of America, provided his analysis on “Morning Call.”

EIA Data
An analysis of the just released energy department's inventories report, with Bruno Stanziale, Bank Of America principal in commodities sales; CNBC's Sharon Epperson & Liz Claman

“You’re probably going to see a bit of profit-taking with this number, and I expect a bit of the same next week,” Stanziale said, after the government reported that U.S. gasoline supplies rose 1.7 million barrels last week.

Stanziale is bullish: "We saw this huge acceleration in demand from 2003 to 2005 -- it leveled off.” He added, “Now, we’re returning to historical norm growth rates."

While imports boosted inventory levels last year, Stanziale explained, Americans shouldn’t count on them too much in 2007: “It’s a different world,” he said. “You have a lot of parts of the world that are now importing. We need production in the States.”