2/6/2013 Update:

Tuesdays’ Crude Pit Session:

High: 97.07

Low: 96.53

Close:  96.66

Looking ahead to today:

Despite the more the 50 cent break even trading range from yesterday’s pit session, there is not too much to speak of. Last night he had the API inventory numbers come out for crude and products, with crude showing a larger than expected build of 3.625 million barrels. The Cushing OK plant shows a small draw of 24k but the build still gives us a selling opportunity as our analysts forecast for crude inventories are looking for a build anywhere from 2.5 million to 3 million barrels. In the pit, volatility offered yesterday by 2 vols lower, as skew shows offer by way of mid and back month calls coming in.  Basically telling us, there are no new buyers in the market until we pass this 98 dollar handle. Big trades did go off in the pit yesterday, but there was no follow through because volatility was on the offer and moving lower. Ahead of our opening bell and in reaction to the last nights API inventory numbers, crude is trading lower in the overnight session with implied volatility up 2 vols.  That said, we want to keep an eye on today’s 1030am inventory numbers and watch the technical levels above the 98 to 98.30 for a bullish breakout or a break below the 95 to 94.50 for a bearish sell off. 

Levels:

Support: 96.02, 95.38, 95.00, 94.50, 94.22

Resistance:  96.55, 97.07, 97.18, 97.70

Tuesdays’ Natural Gas Pit Session:

High: 3.407

Low: 3.318

Close:  3.401

Looking ahead to today:

We saw natural gas trade higher yesterday off a colder than expected weather report in the next 6 to 10 days. Keep in mind, the high production issues going on with natural gas is still impacting this market. This market right now is solely driven by technical weather patterns and inventories at the moment so we have to keep an eye on all of them. We are expecting to see Natural push up to the 3.45 to 3.60 level and then possibly watch it sell off.  However, tune in for a full commentary to get the complete breakdown on today’s Natural Gas pre- pit action.

Levels:

Support: 3.384, 3.336, 3.318, 3.270

Resistance:  3.451, , 3.480, 3.498, 3.612

Tune in today to hear Marty's live analysis and pit commentary on all the NYMEX Energy Markets.   www.tradersaudio.com