5-6-20 RCC Energy Market Update

Unlike the last few trading periods, losses were seen across the complex today as U.S. crude stockpiles rose less than expected.  Diesel stocks rose by 9.5 million barrels in today’s report, triple the expectation, driving the markets lower.  Gasoline demand rose a bit last week as inventories were down 3.2 million barrels, lower than the expected 2.2mmbls.  Refinery utilization was u p0.9% at 70.6% — according to the EIA, refinery crude runs were up by 215,000 bbls per day last week.  June heating oil futures continue to test the 50% retracement level, as they were not able to break through today. Like Heating oil, June WTI futures are testing the 61.8% retracement, but could not push through.  Global supply will likely be in focus as we close out the mid-point this week.