1/4/2013 Update:
Thursdays Crude Pit Session:
High: 93.30
Low: 92.62
Settle: 92.91
Looking ahead to today’s crude pit session:
We saw crude oil prices rally a bit at the open making highs at 93.30, however the rally was short lived off news that the Seaway Pipeline plans to resume full service doubling its capacity and possibly shrinking imports, additional news that the FOMC is looking to end its Bond purchase stimulus programs in 2013 pushed prices down further. Yesterdays API report showed a -12 million barrel draw in crude inventories, a 6.7 million barrel build in Distillates and a 3.3 million barrel build in Gasoline. Today’s 11am DOE report is forecasting a -700,000 draw in crude inventories. Using last night’s API numbers as a leading indicator, we may see a larger draw in DOE numbers than forecasted causing a possible rally in prices. However, we need to keep a close eye on RBOB and HO to see how they react to a projected build in inventories. We are still looking at the 93.50 area as a major level of resistance, if we can break and hold above this level, options suggest we can easily push up into the 95.00 handle. If crude oil traders cannot push through the 93.50 area, than we can expect prices to fall to the bottom of our range at the 90.00 handle.
Levels:
Support: 92.14, 91.60, 91.00, 90.50, 90.00
Resistance: 92.59, 92.78, 92.94, 93.30, 93.50, 93.62
Thursdays Natural Gas Pit Session:
High: 3.236
Low: 3.164
Close / Settle: 3.195
Today’s Natural Gas pit session:
We watched Natural Gas Pit trade nearly flat on the session closing and settling near open prints as traders continued to struggle with US weather forecasts calling for warmer temperatures. Today’s Natural Gas inventory report is due out at 1030am and is forecasting a -129 BCU draw. A larger draw than expected could cause prices to rally. However, a build can easily continue to push us down to the 3.050 level
Tune in this morning to hear a full analysis and pit commentary.
Levels:
Support: 3.236, 3.199, 3.164, 3.127, 3.050
Resistance: 3.271, 3.343, 3.372, 3.411, 3.500
No comments:
Post a Comment