Where Gasoline Prices Are Heading Next: Schork
Consumers could see lower gasoline prices in the wake of Hurricane Sandy's destruction along the East Coast, The Schork Report editor Stephen Schork said Tuesday on CNBC.
On "Fast Money," he said that despite a threat the super storm could have eliminated 600,000 barrels a day of gasoline production capacity, gasoline prices aren't yet reflecting the worst-case scenario.
(Read More: Will Hurricane Sandy Cause Gas Shortage?: Pros)
Schork called it an "extremely bearish tale tell, and for the consumer listening, it's going to translate into better pricing in the weeks ahead as we approach the holidays."
Schork shared an anecdote about having connectivity even as the hurricane passed over his suburban Philadelphia office, which he took as a good sign that "a complex as sophisticated as a refinery should have little problem ramping up production."
There won't likely be prolonged shortages, if they do occur, he said.
(Read More: Gartman: Crude Oil Could Be Heading to This Level)
"The East Coast is in a good position because we have the refineries, but we are also connected via pipeline to refineries in the Gulf Coast," Schork said, adding that European refiners were also an option for processing crude oil.
Gasoline prices will bottom between now and Thanksgiving, moving back up along with increased seasonal demand in the next four to five weeks.
Trader disclosure: On Oct. 30, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long ALL Puts; Jon Najarian is long DAL Puts; Mike Murphy is long HTZ;
For Josh Stirling
Josh Stirling maintains a long position in Scottish Re Group Ltd. (SKRUF) and Ram Holdings Ltd. (RAMR). The following companies are or during the past twelve (12) months were clients of Bernstein, which provided non-investment banking securities related services and received compensation for such services AIG / American International Group; An affiliate of Bernstein received compensation for non-investment banking-securities related services from the following companies AIG / American International Group; In the past twelve (12) months, Bernstein or an affiliate managed or co-managed a public offering of securities of AIG / American International Group; In the next three (3) months, Bernstein or an affiliate expects to receive or intends to seek compensation for investment banking services from PGR / Progressive, AIG / American International Group.
Got something to to say? Email email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published online, email firstname.lastname@example.org.