The API report shows that US Crude stockpiles shrank 2.6 million barrels last week, which is bearish given that the oil market is in backwardation, and many analysts expected many sellers would take advantage of unusually high prices, and sell any oil they could out of inventory.
The real bearish part comes in the product numbers given the insane run-up in product prices. Gasoline stockpiles rose 2.6 million barrels last week, so much for that vaunted fuel shortage. Analysts were expecting a drawdown in supplies around 1.5 million barrels in the EIA report.
It gets even more bearish as we go through the inventory numbers as Distillates increased 3.8 million barrels which includes heating oil and diesel. Inventories for Distillates were expected to climb approximately 1.5 million barrels in the EIA report.
Again given the run-up in prices expect some cold water of reality smacking the bulls back into their corrals. There is no supply shortage, there never was a supply shortage, and in fact, there is an overabundance of supplies.