The crude oil complex traded mostly on the defensive once again on Tuesday as the current fundamental outlook seems to have moved into the primary price driver’s seat. At the end of the day the American Petroleum Institute (API) released its weekly inventory snapshot with mostly small changes with the main feature being a large crude oil inventory build in Cushing, Okla., and a smaller than expected decline in gasoline stocks.

Crude oil closed below $44.00 a barrel, suggesting there are underlying weaknesses not only in the energy sector but in the global economy. It is becoming more clear the Brexit vote was just enough to slow demand from a path of market balance to the perception of continued oversupply.

After rising to the highest price this year, crude oil prices are starting out the early U.S. trading session in negative territory. The market remains primarily focused on Sunday’s OPEC/non-OPEC meeting with most everything else remaining in the background.

While most analysts were coming to the conclusion that the crude oil supply would start to draw down eventually, that process may be starting a little quicker than anticipated. The American Petroleum Institute shocked the market by reporting that the crude oil supply fell by 4.3 million barrels. That was a far cry from the 3.5 million barrel build that was anticipated and probably puts to rest the hype that the U.S. is going to run out of crude oil storage.

The market has been reverting back to the perception view the minute something even remotely bullish is released over the media airwaves.

Crude oil glut concerns and geo-political drama set the stage for the energy markets today. The weakness in crude has sent the price of gasoline below $2 a gallon.

Big pain in the oil patch as Chesapeake Energy cuts 15% of its total workforce amounting to 740 high paying energy jobs. The company, which has already cut its capital spending by more than 40% is retrenching even more to stay what CEO Doug Lawler will be an "enduring enterprise."

Crude oil prices fight to hold $40 a barrel, a level that--if breeched--would more than likely show bad things about the health of the global economy.

Yesterday’s expiration of the August Nymex WTI contract was mostly uneventful with the market trading in a relatively tight trading range. So far this morning the market is on the defensive after the API reporting a surprise build in total U.S. crude oil stocks.

Crude oil prices have been in a selling mode for most of this week on a combination of the evolving situation in Greece, a sell-off in Chinese equities and the growing possibility of an Iranian nuclear deal. All three areas can potentially lead to the current oversupply of oil growing even further.