Inventories were bullish but the rally was obliterated
The crude bears were waiting in the weeds and sold a bounce in oil after the weekly inventory report.
The data showed an unexpected build in oil supplies and that quickly sent crude 80-cents higher to $45.15 but the gains lasted only a couple minutes and crude tanked down to a session low of $43.74 afterwards.
One reason is the uptick in production. It's a sign that we've hit the bottom for the cycle. Drilling rigs have been rising for months and it may finally be showing up in output.
But more generally, this was a pretty clear sign that the trend is lower.