Additionally, the structure of the futures curve continues to indicate tighter supply.

"Yesterday's choppy performance in the oil and equity markets has fueled speculation over how much further the rally in risk assets has to go," said Stephen Brennock, analyst at PVM Oil Associates.

"Oil prices are treading water ahead of what is sure to be a weather-affected EIA update concerning U.S. oil stockpiles."

Pent up demand as the global economy recovers has even got some traders talking about the prospect of returning to $100 crude over the next year or two.

API

Crude +1.026mm (-5.372mm exp)

Cushing +2.738mm (-3.034mm exp)

Gasoline +66k (-3.472mm exp)

Distillates -4.489mm (-3.905mm exp)

DOE

Crude +1.29mm (-5.372mm exp)

Cushing +2.807mm (-3.034mm exp)

Gasoline +12k (-3.472mm exp)

Distillates -4.969mm (-3.905mm exp)

DOE confirmed API's reports of a modest crude and gasoline build (and large distillates draw)...