SCO - U.S. Oil Demand Remains Weak But There Are Signs Of Stabilization

• The oil report by EIA today will pretty much capture what it will look like until October.
• US SPR will keep hitting commercial crude storage to the tune of ~7 million bbls a week, so commercial crude storage will build.
• Product storage will keep leading the way lower as refineries disappoint on throughput.
• Demand is starting to bottom, but we need to move higher throughout the summer for the deficit to continue.
• Once SPR is finished in October, oil markets will be back in a steep deficit. In the meantime, energy companies are printing cash, so investors should remain invested.

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