On the fundamental front the first batch of data released last night... the API inventory report was mixed (see below for more details). US inventories are still well above both last year and the five year average or simply put oil is well supplied globally with no shortage of oil any place in the world. Oil fundamentals are still biased to the bearish side.
The API report was mixed and not in directional sync with the range of expectations. Crude oil showed a larger than expected draw. Gasoline showed a much larger than expected build in inventory while distillate fuel also built versus an expectation for a modest draw. The API reported a draw (of about 2.2 million barrels) in crude oil stocks versus an industry expectation for a smaller draw as crude oil imports increased while refinery run rates increased strongly by 2.1%. The API reported a modest build in distillate and large increase in gasoline stocks.