With adequate supply and continued slumping demand, crude prices have shown more sensitivity to equity market fluctuation than traditional supply and demand fundamentals as of late. Accordingly, with equity markets fluctuating on a daily basis based on the economic news of the day, crude prices have floated above and below the $50 mark over the past two weeks. With regard to refined product, gas prices, while being sensitive to anemic demand, have shown surprising resilience due to reduced refinery output and restricted imports as of late. Furnace oil prices continue to soften in light of record setting temperatures and diesel spot markets react to increased domestic U.S. production coupled with increased imports from Eastern Canada.

• The U.S. government reported on Wednesday that the economy shrank at a worse-than-expected 6.1% pace at the start of this year. The Commerce Department report indicated that a rebound in consumer spending was overwhelmed by cutbacks in business spending and the biggest drop in U.S. exports in 40 years.
• The U.S. Labor Department reported last Thursday that initial claims for unemployment compensation rose to a seasonally adjusted 640,000, up from a revised 613,000 last week. The number of workers continuing to file claims for unemployment benefits topped 6.1 million.