3/20/2013 Update:

Previous Crude Pit Session:

High: 94.27

Low: 92.43

Close:  92.50

Looking ahead to today:

We saw crude oil prices trade in a wide 1.84 range before settling at 92.50 off of concerns that Cyprus may reject the latest bailout package, these fears also dragged down RBOB, HO and Brent throughout the trading session.  We did see the 92.00 support area hold in the overnight Globex session pushing us up to make overnight high prints at 93.40 suggesting we may see a retracement back to range highs.   However, we need to continue to keep a close eye on Cyprus news to see how the markets react to any new bailout proposals as their Parliament did defeat yesterday’s tax based bailout last night.  Additionally and perhaps more importantly, all eyes will be focused on today’s 10:30am DOE Inventory Report that is forecasting a 1.8M barrel build in inventories.   Last night’s API report showed a -413k draw in Crude, a +278k build in Gasoline and -1.3M draw in Distillates.  Using this report as a leading indicator into today’s DOE report, we could see a possible draw in inventories that may put upward pressure on Crude Oil Prices, whereas a build could continue to push prices lower. 

  

Levels:

Support:  93.17, 92.43, 92.00, 91.89, 91.06

Resistance: 93.98, 94.27, 94.47, 94.90. 95.28

  

Previous Natural Gas Pit Session:

High: 3.961

Low: 3.877

Close:  3.883

Looking ahead to today:

We saw Natural Gas prices on the bid for most of yesterday’s pit session before closing just below high prints at 3.971.  Although we have seen a slight pullback in the overnight session, options continued to look bullish yesterday suggesting traders may still want to test the 4.000 level.  The latest weather reports also still appear to be supportive with colder than usual spring temperatures throughout most of the U.S.   That said, we will need to keep a close eye on how prices react at key levels as well as any new weather reports that may reverse or slow down this bullish up trend.   The key indicator for this market will be tomorrow’s 10:30am Storage Report,  if we do see another larger than expected draw we can easily see this market push into the 4.000 handle as options suggest. 

Levels:

Support: 3.903, 3.883, 3.869, 3.795, 3.726      

Resistance: 3.940, 3.961, 3.974, 4.000, 4.010

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