9-16-20 RCC Energy Market Update

It was another strong day for the energy markets as the entire complex managed to close significantly higher. The release of the US inventory report this morning confirmed a draw down of crude oil inventories, however, less than what was expected from the API report. Refined products were split as gasoline inventories also fell and distillate inventories grew last week. Also boosting prices is Hurricane Sally making landfall as a Category 2 storm which has impacted more than a fourth of offshore output, nearly 500,000 barrels per day (bpd). The energy complex has rallied so far after struggling last week and will see if this momentum can carry for the next couple days. Crude oil once again broke through a key resistance level of $40 by adding $1.88, gasoline surged $0.0508 higher, and distillate managed to gain $0.0170.