COM - U.S. Oil Demand Starting To Recover But More Is Needed

June, 08 2022 02:09 PM Direxion Auspice Broad Commodity Strategy

U.S. oil demand is starting to show signs of recovery, but we are still below that of 2018/2019.
Gasoline, distillate, and jet fuel demand are only matching 2021, so a further recovery is needed.
Most likely scenario, in our view, going forward is for U.S. implied oil demand to lag 2019 by a touch. This will result in refined product storage to stay flat.
Refinery margins will fall a bit and with higher throughput, crude prices should get a lift higher.
Energy stocks should enjoy a period of higher and more stable prices (summer). We see the range being $115 to $130.

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Company Name:	Direxion Auspice Broad Commodity Strategy
Stock Symbol:	COM
Market:	NYSE