March crude oil continued its march lower today, as it opened the night session near it highs and plunged during the day session. Crude oil reacted negatively to the latest International Energy Agency report. The IEA raised its estimate of surplus oil supply for the 1st half of the year. It expects higher OPEC output and predicts excess supply by an average of 1.75 million barrels per day. Last month’s forecast had excess supply at 1.5 million barrels per day. It also expects demand growth to slow. Goldman Sachs (N:GS) once again sees price continuing to decline, as they wouldn’t be surprised to see crude trade into the teens as storage capacity is reaching its max.
The March contract made its high in the early morning, trading to 30.61, before grinding lower into the 29.00 handle, then plunging to its low of 27.74 and settling the day at 27.94. Crude recovered and is currently trading near 28.50.
High – 30.61
Low - 27.74
Last - 27.94
Pivots for 2/10/16:
R2 31.63
R1 29.79
PIVOT 28.76
S1 26.92
S2 25.89