"There is still hope that inventories will draw and crude runs will remain high," noted one research director ahead of the API data as WTI rose for a 4th day (back above $44), the longest rally in over a month. With tropical storm Cindy likely impacting the data, API showed a surprise crude build (exp -2.25mm) and notable gasoline build which sent WTI/RBOB prices reeling.

API

• Crude +851k (-2.25mm exp)
• Cushing -678k
• Gasoline +1.351mm (unch exp)
• Distillates +678k (+350k exp)

Figures will be tricky to interpret because of impact from tropical storm Cindy, but taken as reported the biggest headline was the surprise build in crude and gasoline is most worrisome for the bulls...

Following last week's API/DOE data - which showed modest draws - the initial reaction was a knee-jerk higher before tumbling. WTI was limping lower into tonight's print...

Of course, with Hedge funds near record bearish bets, it won't take much to send prices skyrocketing.

Fund managers now hold just two long positions for every one short position, which ranks among the most bearish positions since oil prices started to tumble in the middle of 2014...