7-10-20 RCC Energy Market Update

Overnight and morning losses have disappeared Friday as a wave of buying has helped crude oil and refined product futures recover a large chunk of the losses from yesterday. RBOB was the leader throughout Friday, with the August contract finishing up +0.0326/cpg. Most of the RBOB gains were concentrated in the front-month contract helping to widen the backwardation from August to September. ULSD posted more modest gains today as the August contract finished +0.0173/cpg. Front-month ULSD has put the morning lows that were below $1.20 in the rearview mirror as the RBOB rally has helped pull the contract higher. Crude oil futures were down sharply earlier, but have reversed with equities markets firming primarily on a Gilead Sciences report that the Remdesivir treatment could help reduce COVID-19 deaths. With that said, Crude oil futures finished the day +$0.93/bbl.