6-24-20 RCC Energy Market Update

The complex started off with light losses but finished quite a bit lower due to a few key factors.  The inventory report showed that U.S. crude inventories climbed by 1.4 million barrels, while distillates rose by 249,000 bbls. Gas inventories shrank by 1.7 million barrels. The declines seen today are largely due to the scare of a second wave of Covid-19.  The falling markets comes as reports indicated that the coronavirus cases are increasing in 27 states and that New York, New Jersey and Connecticut would require travelers from states with high transmission rates to self-quarantine for 14 days.  Covid-19 concerns also took a toll on the equity markets, with the Dow Jones Industrial Average off about 700 points.  The International Monetary Fund slashed its outlook for global economic growth and now projects the global economy recovery in 2021 to be sluggish.