Wednesday saw one of the largest intra-day bounces in the history of the US stock indices, and that recovery rally helped pull oil prices recover most of their early $2 losses, while refined products finished the day 4 cents above their early morning lows.
The bounce seems to have temporarily saved both asset classes from a technical breakdown that would have favored even more selling near term, although there are still bearish signals flashing on the charts that seem to favor lower prices over the next few weeks.
To put the volatility in perspective, in just over 3 months of trading, 2018 has already had 3 times as many 1% moves in US equity indices as we had in 2017. For energy prices, it seems to be a daily dilemma whether or not to follow the herd and react to the big swings in stocks.
The DOE inventory report seemed to get lost in the shuffle a bit yesterday with so much focus on the stock market. Notable items include new records set for US crude oil production and exports, while refinery runs continued to climb in spite of several forecasts calling for April to be a busy month for maintenance.
Wednesday also marked the first day of trading for 7.8lb RVP conventional gasoline in the Gulf Coast, which means today is the first day the supplemental summer pricing codes will be used across the South East.