8-24-20 RCC Energy Market Update

RBOB and ULSD futures were trading higher early Monday ahead of Tropical Storm Marco’s arrival in southeast Louisiana later in the day, while crude futures were registering lighter gains. Hurricane warnings in effect on Sunday for Marco have been lifted, but tropical storm and surge warnings remain in effect for Louisiana’s southeast coast east through Mississippi. Meanwhile, Tropical Storm Laura, currently in the Caribbean, will also plow through the Gulf of Mexico towards Texas and Louisiana, and could potentially reach major hurricane status (Category 3 or more) ahead of landfall anticipated late Wednesday. As of Sunday afternoon, nearly 60% (about 1.1 million b/d) of offshore U.S. Gulf of Mexico oil production was shut in due to the storms, according to the federal Bureau of Safety and Environmental Enforcement. With that said, RBOB finished the day up strong closing +0.0830/cpg, ULSD finished +0.0396/cpg, while crude oil finished +0.28/cpg.