“This report is massively concerning. We are not where we need to be, nor are we moving fast enough in the right direction as we head into fall.”

Prices reversed yesterday’s gains, spiraling lower on a soft demand
outlook and rising virus cases.

Oil prices had a strong day on optimistic inventory data, specifically with a 2nd consecutive drawdown in distillate stocks

Oil prices traded down today as fuel demand continues to be a concern and the chorus of warnings grows. Three of the world’s biggest independent oil traders said consumption won’t meaningfully recover for at least another 18 months.

Prices were steady for the day as a weaker dollar and strong equities supported crude prices. Coronavirus continues to weigh on prices as some Midwest states have seen a 25% jump positive COVID-19 tests, and the number of new infections nationwide have grown to an average of 46,000, compared with 35,000 daily two weeks ago.

“There’s a lid on this market to the extent that COVID-19 keeps rearing its ugly head in different spots,” said John Kilduff, Partner at Again Capital.

The four-week average gasoline demand was down 9% year over year for last week.“Prices remain vulnerable despite the fact that they have settled as the week has progressed,”

Oil prices rose today as crude, gasoline, and distillate inventories all fell last week according to today’s EIA report. US crude inventories fell by -1.64 MM/bbls, slightly less than the forecast of a -2.07MM/bbl draw.