3/27/2013 Update:

Previous Crude Pit Session:

High: 96.45

Low: 95.24

Close:  96.20

Looking ahead to today:

We saw yesterday’s crude oil traders push prices to 5 week highs at 96.45 following news late in the session that North Korea saying it has prepared for attacks on US bases in Hawaii, Guam and the mainland, by ordering its artillery rocket units into "combat posture" towards the country.  Prices also benefited from better than expected durable goods orders, improved market sentiment toward Cyprus and as breakdown of the BRENT/WTI Spread.  Last night’s API showed a +3.7M barrel build in Crude inventories, a -2M draw in Gasoline and a -1.9m draw in Distillates.   Using this report as a leading indicator into today’s 10:30DOE inventory report that is forecasting a build of only 1.6M in Crude inventories, We may expect to see a larger draw than expected possibly putting downward pressure on prices as we have already seen in the overnight session. 

Levels:

Support:  95.52, 95.24, 94.79, 94.59, 93.08

Resistance: 95.93, 96.45, 97.03, 97.96, 98.44

Previous Natural Gas Pit Session:

High: 3.995

Low: 3.895

Close:  3.989

Looking ahead to today:

We saw May Natural Gas prices push up towards the 4.00 handle yesterday on a late day bid off the 3.900 support level once again.  This bullish trend continued overnight making new highs at 4.030.  Despite this bullish price action and ongoing record open interest in the Natty, we are still continuing to see increased PUT activity come into play in the Options signaling this uptrend may be coming to an end soon.   All eyes will be on Tomorrow’s storage report numbers that is currently forecasting a bullish -85BCF draw in inventories as well as our short and long term weather forecasts for clues as to when this bull run may end.

Levels:

Support:  3.965, 3.901, 3.895, 3.798

Resistance: 4.030, 4.068, 4.132, 4.299

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