NEW YORK ( TheStreet) -- Crude inventory data continue to show more drawdowns as crude has recovered from August lows.

The Energy Information Administration reported a drawdown of about 2 million barrels for a second week in a row, while gasoline showed a large build.

Luke Rahbari of Stutland Volatility Group told TheStreet's Jill Malandrino that the data are encouraging regarding the crude drawdown and are offsetting some of the concerns over weakness in demand from China, the world's second largest consumer of the crude oil.

In addition, production expectations for 2016 have been lowered, which also helps ease the supply glut. Crude oil production is forecast to continue decreasing through mid-2016 before growth resumes late in 2016, according to the EIA.

Rahbari said he expects a sector rotation into energy-related stocks as 2015 closes out and as investors take advantage of tax losses and hunt for values in master limited partnerships with structured paper and debt deals. Marginal producers can't produce oil at the low levels crude is trading, which leads to debt restructuring and gives an upper hand to the largest, diversified companies such as Exxon Mobil (XOM) that have strong balance sheets and steady businesses.

Exxon Mobil and other big oil companies could start to pick up assets for very cheap prices, Rahbari explained, and start to get a strangle hold on the business and potentially get production in line with the demand environment to get back at more profitable levels.

Although big players may not buy whole companies, they will look for deals on properties and unserviceable wells. He also said investors may look to get out of energy stocks that have been underperforming significantly and buy into more stable names such as Exxon Mobil.

More from Investing

Gotta Know When to Hold 'Em: Casino Stock Selloff Is Premature After Union Vote

Gotta Know When to Hold 'Em: Casino Stock Selloff Is Premature After Union Vote

Bank Stocks Slump After Congress Greenlights Dodd-Frank Rollback

Bank Stocks Slump After Congress Greenlights Dodd-Frank Rollback

10 Questions for PayPal Ahead of Its Big Investor Day

10 Questions for PayPal Ahead of Its Big Investor Day

Tesla's Model 3 Is Far From Being for the Masses -- at Least For Now

Tesla's Model 3 Is Far From Being for the Masses -- at Least For Now

Rent the Runway co-founder Chats with Cramer on Equal Pay and a Good Pair Jeans

Rent the Runway co-founder Chats with Cramer on Equal Pay and a Good Pair Jeans