5-8-20 RCC Energy Market Update

The energy complex was able to close the day with gains seen across the board.  Oil prices settled 5% higher in their second week of positive ground made up after the demand destruction caused by covid-19 as U.S producers cut production with the number of drilling rigs falling to a record low and as more states moved ahead with plans to relax lockdowns. The rig count was down 34 rigs to 374 this week, reflecting data going back 80 years  as the energy industry slashes output and spending to counter the crash in fuel demand.  Moving forward, focus will likely be on data supporting adherence to OPEC+ cuts as North American cust could hit 1.7 million barrels per day by the end of June.