The Energy Information Administration announced an unexpected draw down in U.S. gasoline inventories. What does this bode for prices as we approach "gasoline season"? Joel Fingerman, principal at OilAnalytics.net, told "Morning Call" viewers to expect a rise -- and mentioned a possible way to play the prices.
The EIA said crude oil inventories rose by 2.1 million barrels last week, while gasoline sank by by 2.8 million. Fingerman told CNBC's Liz Claman he was expecting a draw on gasoline "between 100,000 to 500,000," and was taken by surprise by "such a big number as 2.8 [million]."
The petroleum analyst noted that U.S. gasoline stocks are now "close to the lowest record level" for this time of year and predicts a "continued significant draw" on gasoline. He pointed to refinery problems and consumer demand that remains "very strong" -- but for those who seek a novel play on fuel, he predicted "very large crack spreads," with crude oil prices following gasoline, rather than leading.