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The Breaking Point

Energy traders are eagerly anticipating Wednesday’s crude oil inventory report which could send ripples throughout the sector. It’s widely believed the data will show crude oil inventories rose last week after unexpected drops in the prior two periods.

Joe Terranova, chief alternatives strategist at Phoenix Investment Partners is also expecting to hear that demand for gasoline has dropped-off. “I’m not sure that any other data matters,” he says. And with the crack spread “getting hammered” he wouldn’t advise get involved with the refiners.

How are you trading?

”I think you can get long the integrated names now, especially Hess ,” says Terranova. "I covered my HES short last week. And I’m long the Canadian dollar."

The Energy Department releases petroleum inventory data for the week ended May 30 at 10:35 a.m. EDT. We'll have all the details right here on CNBC.com















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Trader disclosure: On June 10, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (MSFT), (DIS), (WMT); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (AAPL); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns (XME) Puts; Finerman's Firm Is Short British Pound; Finerman's Firm Is Short (GLD), (IYR), (IJR), (MDY), (SPY), (IWM); Seymour Owns (AAPL), (F), (INTC), (MER), (MSFT), (TSO), (EEV); Seygem Asset Management Owns Gazprom, (HAL), (TUR; Gazprom Trades Over The Counter In The U.S. But Trades On The Exchange In London

Terranova Owns (FXC), (LUV), (GS); Phoenix Investment Partners Ltd. Is Long Airtran Holdings, Alaska Air Group, American Airlines, Apache, BP, British Airways, Chesapeake Energy, Chevron, ConocoPhillips, Continental Airlines Delta Air Lines Deutsche Lufthansa, ENI SPA, ExxonMobil Gazprom, Hawaiian Holdings, Hess, Holly Corp. Husky Energy, JetBlue, Lukoil, Marathon Oil, Murphy Oil, Occidental Petroleum, PetroBras Intl. Fin. Petro-Canada, Petroleo Brasileiro S.A., Petroleos De Venezuela SA, Qantas Airways Republic Airways, Royal Dutch Shell, Skywest, Southwest Airlines, Suncor Energy, Sunoco, Tesoro Texaco Capital, Total SA, United Airlines, US Airways Group, Valero Energy