3/7/2013 Update:

Previous Crude Pit Session:

High: 90.72

Low: 89.55

Close:  90.42

Looking ahead to today:

We saw crude prices push down to lows at 89.55 after the DOE reported a 3.8 million build in inventories compared with the expected 788K, Gasoline stockpiles had a smaller than expected draw of -616k vs 1M and Distillates showed a much larger than expected draw at 3.8 million vs 1.0 million .  This was the 7^th consecutive build in inventories this combined with rising supplies in Cushing OK and reports that the North Sea Brent Pipeline has resumed operation seemed to generate a  bearish sentiment among floor traders as we continued to see increased PUT activity in the 90, 89, 88 and 87 strike prices.  Many traders are still expecting this market to possibly retrace to the 92 handle before selling off once again down to the 88 handle as options continue to suggest. 

Levels:

Support:  90.22, 89.74, 89.55, 89.33, 89.06

Resistance: 90.90, 91.07, 91.40, 91.97, 92.55

Previous Natural Gas Pit Session:

High: 3.540

Low: 3.462

Close:  3.473

Looking ahead to today:

We saw Natural Gas prices close down yesterday’s at 3.473 after failing to hold above the 3.500 resistance area.  Today’s 10:30am Natural Gas Storage report is forecasting a -135 BCF bullish draw in inventories.   We need to keep a close eye on this number today as well as our long and short term weather forecasts for clues on where traders may want to take this market.   Many traders are still looking at a break of the 3.400 area as a bearish sign that could push us back down to the 3.200 and a close and settle above 3.50 to be a bullish sign

Levels:

Support: 3.462, 3.443, 3.408, 3.320

Resistance: 3.496, 3.531, 3.550, 3.584

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