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Turmoil may stunt summer oil profits

As oil continues to be battered and bruised, the pain appears to be far from over.

Crude has been whipsawed this week, experiencing a four-day rally, then crashing nearly 9 percent due to U.S. crude oil supplies rising by 6.3 million barrels.

A world awash in oil does not bode well for producers during the critical summer months when gas prices typically rise as the petroleum industry switches over to summer fuel blends and demand typically picks up as more drivers hit the road.

Read MoreOil whipsawed on supply glut

A floor hand for Raven Drilling, helps line up a pipe while drilling for oil in the Bakken shale formation outside Watford City, North Dakota.
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A floor hand for Raven Drilling, helps line up a pipe while drilling for oil in the Bakken shale formation outside Watford City, North Dakota.

"The thing that worries me is the rest of the complex is running full out because the margins are great," said Andy Lipow, president of Lipow Oil Associates on CNBC's "Squawk on the Street" Wednesday. "If gasoline inventories continue to remain high over the next couple of months, they'll kill the summer gasoline margin."

Lipow is expecting U.S. production to rise to 9.3 to 9.5 million barrels per day, continuing to apply pressure an already fragile oil market.

"I think we're going to make one more run down to the low 40s," Lipow said. "Inventories in the U.S. are going to continue to rise over the next couple of months."