2/21/2013 Update:

Wednesdays’ Crude Pit Session:

High: 97.34

Low: 94.21

Close:  95.20

Looking ahead to today:

We saw crude oil prices trade in a 3.13 range yesterday as locals and dealers did aggressive selling as news of a forced liquidation of a commodity Macro Fund hit the trading pits.  The selling became so aggressive that the CME halted trading for about 10 seconds.  Selling pressure has continued during the overnight trading session making new Globex lows at 93.55.   Last night’s API numbers showed a +3M build in Crude, -122K draw in gasoline and a -1.6M draw in Heating Oil.   Using these numbers as a leading indicator into today’s 11am DOE inventory report we could expect the actual DOE forecasts of +2M Build in Crude, -1.4M draw in Gasoline and a -1.4M in Heating Oil to possibly come in line with expectations possibly having little impact on prices.   Given the fact we are now trading in the 93.00 handle, we have broken the 95.00-98.00 trading range we have been trading in since mid- January.  Options now suggest our new trading range may be 92.00-96.00.   That said,  we will need to keep a close eye on today’s DOE inventory report as a larger than expected draw could put upward pressure on prices and a larger than expected build could continue to put downward pressure on prices confirming a new trading range has been established.

Levels:

Support: 93.55, 93.00, 92.45, 92.00

Resistance:  94.21, 95.38, 96.74, 96.96, 97.34

   

Wednesdays’ Natural Gas Pit Session:

High: 3.312

Low: 3.257

Close:  3.282

Looking ahead to today:

We saw yesterday’s Natural Gas prices trade lower yesterday as the latest 6-10 day weather forecast showed mixed bag of above and below average temperatures across the country. Today, all eyes will be on today’s 1030am Storage Report which is forecasting a -119BCF draw in inventories.  A larger than expected draw could put upward pressure on prices and a lower than expected draw or build may push prices down as we saw after last week’s report

Levels:

Support: 3.257, 3.245, 3.230, 3.223

Resistance: 3.279, 3.301, 3.313, 3.335

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