1/24/13 Update:  

Wednesday’s Crude Pit Session:   

High: 96.73

Low: 94.95

Settle: 95.32

Today’s Crude Pit Session: 

We saw crude oil prices push up at the open yesterday to 96.73 as the Dollar showed some early weakness.  However, the push up was short lived after news of a backlog of crude oil flowing through the Seaway Pipeline hit the newswires and widened the Brent/WTI spread back above $17.50.  The widening spread and excess supply reports sparked a large sell off among brokers and dealers driving prices down to 94.95 before recovering a bit and settling at 95.32.  Last night’s API inventory report showed a +3.2 million barrel rise in crude inventories; while gasoline fell a negative -1.6 million barrels and distillates showed a +750K build.  Today’s DOE inventory due out at 11am is predicting a 1.9 million build in inventories.   Using last night’s API numbers as a leading indicator, we may see a larger than expected build in today’s report possibly putting further downward pressure on prices.   A break and settle below the 95.00 area today could take us down to the 91 handle, a hold above 95.00 could possibly push us up the 97-98 handle as options suggest.  In addition to watching the 95 level we are continuing to keep a close eye on the March Brent/WTI spread.

Tune in to today’s Traders Audio Crude Squawk Broadcast to hear Marty Errico’s full analysis and pit commentary.   

Levels:  

Support:  95.32, 95.00, 94.67, 92.82, 91.85

Resistance:  95.79, 96.64, 96.73, 96.92, 97.76

Wednesday’s Natural Gas Pit Session:   

High: 3.581

Low: 3.520

Close / Settle: 3.553

Today’s Natural Gas pit session:  

We saw a choppy trade off the highs in the Natural Gas Pit yesterday as Traders struggled with the fact that the current temperatures in the Northeast remain below normal and the latest NOAA 6-10 forecasts are predicating warmer weather patterns, basically balancing out demand.  Today’s inventory report due out at 1030 is forecasting a -167 BCF draw in inventories.  A larger than expected draw could push prices up to the 3.75 area and a build could produce further downward pressure on price possibly pushing below the 3.50 support area.

Tune in to today’s Traders Audio Crude Squawk Broadcast to hear Marty Errico’s full analysis and pit commentary.   

Levels:   

Support:  3.560, 3.523, 3.512, 3.476, 3.392

Resistance:  3.596, 3.607, 3.630, 3.644, 3.728

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