11/28/2012 Update:

Tuesdays Crude Pit Session: 

High: 88.01

Low: 86.83

Settlement: 87.19

Looking ahead to today’s crude pit session:

Last night’s API inventory report shows U.S. crude oil inventories increased 1.96 million barrels last week and are hovering above two to three year averages.  Using this report as a leading indicator, we can also expect to see a build in today’s 1030am DOE inventory report above the 500,000m forecast.  That said, if the DOE number does come in higher we can expect to see crude oil traders push prices lower.  Geopolitical fears that the US is not making enough progress in resolving the looming fiscal cliff may also fuel pressure to the down side.   

The cease fire in the Middle East still appears to be holding.  If the cease fire fails apart, then we can see crude easily push up to the 90-94 handle.  However, all the technicals are pointing to the down towards major support at the 84.50 level

Check out www.crudesquawk.com  and listen to all of today’s action broadcasted live from the NYMEX Pits as it unfolds!

Resistance: 86.50, 86.83, 87.00, 87.30, 87.50, 87.87, 88.00, 88.50, 90.00

Support:   86.17, 86.00, 85.50, 84.98, 85.50, 85.00, 84.50