The headline today was oil inventories were up, and they were but by a measly 200,000 barrels. But if you look at the total amount of oil in storage (excluding the SPR), we have only 7 million barrels more in storage than at the same time last year.
Furthermore, the total number of oil products in storage (which to me is the most important factor) was down another whopping 3.1 million barrels.
Far from this being a negative report with regards to oil prices, I think it is hugely positive not just for oil but it strongly suggests the recovery is under way.
I think there is still justifiable concern that we could see a relapse or W shaped recovery, but for now, things are looking up for the economy, the oil market, and PBR.