11/21/2012 Update:

Yesterdays Crude Pit Session: 

High: 88.79

Low: 86.17

Settlement: 86.76

Looking ahead to today’s crude pit session:

We watched crude oil prices fall yesterday to 86.17 as rumors of a cease-fire in Israel circulated throughout the news wires.  We then witnessed crude oil traders push the price back up into the 87 handle overnight as it became apparent that the cease-fire failed to come together.   Putting additional pressure to the upside, The American Petroleum Institute report said that oil inventories have fallen for a second week in a row.   Department of Energy inventories are scheduled to be released today at 1030am.  They are currently forecasting a 800,000 barrel build, an actual build below this number will continue to drive price for crude oil to the upside.  As the cease fire failed to materialize we also watched the January PUT to CALL open interest increase to the CALL side.   

Outside a dramatic build in DOE inventories today,   we are anticipating crude oil traders will stay on the long side of the market until some type of peace agreement is reached in the Middle East possibly pushing prices into the 90-92 handle. 

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Resistance: 88.31, 88.50, 89.10, 89.86, 90.00, 90.50 92.48

Support:  87.24, 87.00, 86.50, 86.17, 85.69, 85.00, 84.62, 82.00