The best way to explain the market action in the energy complex is to compare it to last night's presidential debate—kind of a mess with a lot of data that does not seem to match the current reality. Market action, to say the least, has been lousy.
Today’s API report may be anti-climactic as the world awaits the U.S presidential debates.
Oil prices can’t shake the virus. Reports that U.S. Covid-19 cases jumped over 45,000 in one day in the U.S., and deaths reached 900 turned slightly optimistic market sentiment into a more negative mood. 
Oil prices need a shot of something. The Federal Reserve wants it to be another shot of stimulus and perhaps a shot of a Covid-19 vaccine.
It might be the storm or rising demand or refiners not procuring gasoline. Whatever it is, the API reported a stunning 7.735 million barrel drop in gasoline supply making it the darling of the sector as we are in winter blends category.
The oil market is saying sayonara to summer, jumping into shoulder season as refiners remain shut down. It didn’t help oil when the Saudis cut the selling price for some grades of crude oil, suggesting weak demand and a sense that it isn't going to get better until the snow starts to fly.
The breakdown in the broken-down oil market on Wednesday was a precursor to the breakdown in global stock markets. As the techs dropped, energy stocks tried to creep back. 
Hurricane Laura did its last blast of damage to oil and product prices as a drop in demand overshadowed massive reductions in supply, causing the trade to go into shoulder season mode and take cover ahead of the Labor Day holiday weekend.
Oil prices rallied after touching multi-decade lows in April, but they have been stuck in a narrow trade band for 2 months now as the pent-up U.S. demand rebound in June has fizzled out with flattening fuel consumption that continues to struggle to reach pre-pandemic levels.
China not only imported a record amount of oil last month, economic data coming out of China suggests that demand should continue.