ANALYSIS-Refiners bounce could be short-lived

By Michael Erman

NEW YORK, April 16 (Reuters) - A bounce in refining stocks on Wednesday may be short lived, as a weak economy, slowing demand and sky-high crude oil prices are expected to persist.

Refiners got some long overdue good news that U.S. gasoline inventories fell 5.5 million barrels last week, according to the U.S. Energy Information Administration (EIA) early Wednesday, more than three times the expected 1.8 million barrel draw.

This could be a signal that refining margins may rise in the near term, especially as consumption increases ahead of the summer driving season.

Still, investors and analysts said the traditional boost refiners get from increased summer driving may not be as pronounced this year, as high gas prices take their toll on consumers' wallets.

"When you go fill your gas tank and you spend $40 or $50, it makes you wonder what the demand's going to be this summer," said Mike Breard, security analyst at Hodges Capital Management, which manages over $1 billion in assets.

"If I were going to buy any energy stock now I'd rather buy a producer or a driller," he said.

Shares of independent refiners have been hit hard over the last six months -- losing as much as a third of their value or more -- as margins to produce gas have plummeted from sky-high levels. The companies have struggled to raise gasoline prices enough to push record crude prices through to their customers.

Gasoline prices are up around 16 percent since last year, according to U.S. data, while crude oil prices have surged over 80 percent in the same period.