Extend the ram out all the way, with the machine running the fluid level will drop even more plus with a small rez the fluid with cyclone in the tank. That intake must have a minimum of a inch of solid fluid over it when running. I would fill that tank to within 2 inches of the top, run the ram in and out several times to purge the air then let it sit off for 10 minutes allowing the aeration of the oil to escape and then try it again. Research the pump to find the correct hydro oil viscosity for your area temps, likely 46. If it is still sucking air then start with the suction line, end fittings and hoses can crack, pump gaskets and shaft seals can leak allowing air sucked past but typically they leak oil at the leak.