5-12-20 RCC Energy Market Update

Markets were mixed today as headlines around increased demand, with pockets around the globe supporting crude oil. Oil prices have been battered by COVID-19, demand destruction has been seen around the world, efforts to contain the virus are being implemented. It appears that crude has been making a slow recovery in recent trading periods, as news of production cuts and increased demand supports recovery. WTI closed up $1.64. Finished products ended lower today, with heating oil futures leading the way down $0.0303. Headlines suggest that during the price drop off seen in recent months, refiners increased production of diesels as profits were more favorable than gasoline, resulting in an oversupplied market. Finally, gasoline was down slightly $0.057. Demand for gasoline in the U.S. has been on the rise as states begin to reopen.