The market was already in a tenuous position coming into the session, then came the latest update on petroleum inventory levels, which kicked the legs from under energy names and put pressure on the boarder market as well. 

After eight weeks of declines, there was a shocking increase in crude oil reported by the EIA today- the street was looking for a draw of 3.5 million barrels.

• Crude +3.3 million
• Gasoline +3.3 million
• Distillates +4.4 million

Too Many Rigs?

This dovetails with the continued return of US rigs led by a spike in horizontal oil rigs brought back online over the past year.

Overall, oil rigs in the US have climbed to 733 or 126% in the past year:

• +11 week to week
• +408 year to year

The negative impact on oil is legit pressure, although I think there will still be another spike this year. Although I must admit, it seems like US procurers are more eager to derail the market more than OPEC.

Meanwhile, the stakes are high tomorrow that James Comey says something that breathes long term life into the media frenzy over the election, role of Russia and whether President Trump tried to intimidate key figures in the investigation of Michael Flynn.

I think it is all smoke and no fire, and just maybe, Comey stops short of making such claims and that shifts investor focus back to the market and economy.