Crude Pit Session

High: 86.23

Low: 84.94

Close/settlement: 85.76

Looking back at yesterday’s trading, we had a significant build in our DOE / EIA  inventories causing price to briefly dip below 85.00.   For a bullish indication on the day we must open above yesterday’s settlement print of 85.76.  If we fail to open above this number, we can interpret this as a bearish sign and expect prices to continue to fall because we settled in the middle of our pit session range.  Look for locals to do some light buying today to cover there positions if we clear the resistance levels at 86.75 and 87.50.    Levels of support below are 84.85 and 83.30. 

 Natural Gas

This morning before the inventory we are expecting a build of 66 BCF of natural gas in storage. Also we are taking more volume in the DEC contract so we are rolling over as well. We are going to have a lot of volatility because of options expiration in the November contract, and the futures expiration is Monday. So price action is going to be active!!!