4/1/20 RCC Energy Update

Energy markets finished lower across the board with refined products experiencing sharp losses on the first trading day in April. The inventory report by the Department of Energy show a massive build of 13.8 million barrels of crude oil and a large build in gasoline of 7.5 million barrels while distillate posted a draw of 2.2 million barrels. Despite the largest one-week rise since 2016 for crude oil, the contract closed modestly lower and will look to test $20 support level. Similar to crude oil, gasoline large build and the dramatic drop in demand continued to put pressure on gasoline as it lost $0.0462. Even with a draw down in inventories and an uptick in demand due to agricultural work, distillate led the complex lower today by losing $0.0692.