Don’t Freak, Surge in Gas Prices Almost Over

Chances are you’ve noticedprices at the pump creeping higher and higher. But we’ve got some good news. Their relentless march upward is almost over.

So says, long time oil industry analyst Tom Petrie, chairman Petrie Partners on CNBC's Fast Money Halftime Report.

“The current run is late seasonal,” he says. Nothing more.

In other words, gasoline typically marches higher this year with demand spiking during the summer driving season.

And he adds there are a few other supply catalysts driving prices at the pump, too. “There was a refinery fire in California, and low water on the Mississippi slows shipments.”

But the good news is – it’s all temporary.

“Demand destruction is coming,” he says. As summer turns to fall driving decreases and with it demand. And as the Richmond refinery gets back on its feet and water levels rise on the Mississippi supplies should increase.

“Barring an unforeseen turn of events in the Middle East, there’s a greater likelihood of a downward move in gasoline in the coming months, than a move higher,” Petrie says.

And Petrie adds, even if prices go a little higher, the price increase itself will generate incremental demand destruction - which in turn generates lower prices.

“As long as the Saudi’s keep the market adequately supplied, prices in the months to come should be lower than where they are today.”

If you agree with the thesis, optionMonster Jon Najarian suggests playing it long refiners. His favorite in the space is Western.

Trader Simon Baker, CEO at Baker Avenue Asset Management, prefers playing the theme long Halliburton and Schlumberger .

Posted by CNBC's Lee Brodie

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Trader disclosure: On August 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Mike Murphy is long SPLS CALLS; Mike Murphy is long WFC; Mike Murphy is long HTZ; Mike Murphy is long LNG; Simon Baker is long AAPL; Simon Baker is long JPM; Simon Baker is long WMT; Simon Baker is long AMZN; Simon Baker is long ADSK; Simon Baker is long LNKD; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long C CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT with wires.