cl finished move.see what it decides from here,using market profile,if you were long you would have sold when we reached the cleave 100.07-.44
Oil inventory fell 7 million barrels; market yawns. Maybe this is why? (Wall Street Journal Article from yesterday) NEW YORK--Oil futures tumbled Thursday on concerns domestic crude-oil supplies are due to increase this month as production remains high. Light, sweet crude for February delivery settled down $2.98, or 3%, at $95.44 a barrel on the New York Mercantile Exchange, the lowest price since Dec. 2. Brent crude on the ICE futures exchange lost $3.02, or 2.7%, to settle at $107.78 a barrel. U.S. crude-oil inventories have fallen for four straight weeks, but much of that has been attributed to a year-end tax incentive for refineries to reduce their supplies, said Dominick Chirichella, oil analyst for the Energy Management Institute. Some Gulf Coast states levy taxes based on the amount of oil refineries have in storage at the end of the year. In addition, the federal tax system operates according to a "last in, first out" method that benefits refineries when their year-end stockpiles are the same as they were the prior year. "Everybody recognizes that most of the crude oil draws we've seen over the last month or so has been really for accounting or tax reasons," Mr. Chirichella said. Analysts are expecting the Energy Information Administration to report a 2.2-million-barrel decline in crude-oil stocks for the week ended Dec. 27, according to a Wall Street Journal survey. The EIA is expected to release its report Friday at 11 a.m. EST. However, market participants are attributing the anticipated drawdown to tax incentives rather than substantial demand, analysts said, and expectations are that next week's report will be bearish. "In the new year, we're going to see inventories starting to rise pretty dramatically," said Phil Flynn, analyst for Price Futures Group in Chicago. U.S. production is booming as hydraulic fracturing and horizontal drilling techniques enable energy producers to access supplies trapped in shale-oil fields. In October--the most recent month for which data is available--domestic crude-oil production hit its highest level for the month since 1988, according to the EIA. Brent crude also hit its lowest price since Nov. 19 on news that protesters at one of Libya's largest oil fields have halted their demonstrations, allowing operations at the field to restart within two to three days. The 350,000-barrel-a-day El Sharara field, operated by Repsol SA (REPYY, REP.MC), has been stopped for two months due to labor unrest. A resumption of disrupted Libyan oil production could increase global supplies, pressuring prices. However, oil ports in central and eastern Libya remain closed. Front-month February reformulated gasoline blendstock, or RBOB, settled down 9.09 cents, or 3.3%, at $2.6950 a gallon. February heating oil settled 7.85 cents, or 2.6%, at $2.9867 a gallon. Both products hit their lowest price since Dec. 17. -Summer Said contributed to this article.
95.40 before 92 or do we go straight there? Now that Vol has normalized a bit I'm tempted to start sell premium again but would like to see how it acts around 92. That wedge this morning was pretty obvious so I'm sure everyone milked it for all it was worth