12/5/2012 Update:

Tuesdays Crude Pit Session: 

High: 88.88

Low: 87.57

Settle: 88.57

Looking ahead to today’s crude pit session:

Crude made pit session session lows of 87.57 yesterday and then rebounded to overnight highs of  89.05.   The rebound came as we continued to see downward pressure on the dollar and the API reported a negative -2.2 million barrel draw in inventories.  Additionally, other analysts forecasted a -1.25 million barrel decline.  DOE inventories are due out today at 1030am.  They are currently forecasting a negative -400k barrel draw in inventories.   If the DOE number is released with a larger draw than the -400K forecast as the API reports and analysts indicate, then we can expect to see crude oil traders possibly push prices higher.  Positive news that the Euro zone is making progress solving their sovereign debt crises and the US is possibly making progress in avoiding the fiscal cliff could also help fuel a rise in prices

Tune in this morning to hear a full analysis and pit commentary.  

www.crudesquawk.com

Levels:  

Support: 88.57, 88.46, 87.98, 87.57, 87.09, 87.00, 86.50

Resistance: 89.00, 89.18, 89.35, 89.83, 91.00, 91.20, 82.00