2/4/2013 Update:

Friday’s Crude Pit Session:

High: 98.15

Low: 96.51

Close:  97.77

Looking ahead to today:

Crude oil inched its way up last week to the 97.50 to 98.00 levels and is now looking a little over bought.  That said, we could possibly see a sale coming into place here, UNLESS we close and settle above the 98.30.  Marty Errico, Analyst at Traders Audio, says “most floor traders he spoke to are looking to get short at 97.50, and the only way they will reverse their positions is if we get a close and settle above the 98.00 to 98.30 levels”.  The heating season is coming to an end and there is a lot of Crude oil inventory available.  Refineries are also having lots of problems cracking there crude oil into heating oil and gasoline, so there is a PUT to Crude oil prices.  On the other hand, tensions in the Middle East problems may escalate forcing prices to jump up.  A close and settle above 98.00, 98.30 can push prices into the 100 handle possibly topping out at 103.  If we don’t see a close and settle above 98 on crude prices may easily push to the low 90 dollar handle according to traders on the floor and as options suggest. 

Levels:

Support: 96.80, 96.51, 95.84, 95.47, 94.20

Resistance:  97.48, 98.15, 98.30, 98.44, 99.52

Friday’s Natural Gas Pit Session:

High: 3.387

Low: 3.278

Close:  2.297

Looking ahead to today:

Over Supply!!  That’s what many floor traders keep yelling out to me when I ask them what I think about Natural Gas.  Traders at the NYMEX are still waiting for that energy point in this market to take it short.  Levels to watch the short begin to come into play are 3.60 to 3.40 our long awaited resistance zone.  Keep in mind there is so much fracking going on across the United States that producers are shutting down Rig’s. This is currently creating a supply balancing act.  Shutting down rigs is only a quick fix there still is so much Natural out there that a sell may be coming soon.

Levels:

Support: 3.278, 3.259, 3.214, 3.105

Resistance:  3.323, 3.368, 3.387, 3.432

Tune in today to hear Marty's live analysis and pit commentary on all the NYMEX Energy Markets.   www.tradersaudio.com