Oil climbs on bounce from Friday's lows

WTI crude settled up 75-cents to $42.62/barrel

Crude is showing the first signs of forming a base. WTI fell as low as $41.43 but couldn't break Friday's low of $41.35 and a sharp move higher to $42.80 has followed.

Traders will next look to the API data due at 4:30 pm ET today. The rough consensus for the data is a 1000K barrel build; that's what's expected in Wednesday's EIA report.

Secondarily, hurricane season is underway and a tropical depression (currently called Four) is forming in the mid-Atlantic. The National Hurricane Center shows a more than 60% chance it grows into a tropical storm within the next two days. It's still very early but its path could take it into the Gulf of Mexico production region.

WTI crude daily