March crude oil made a new low today as it continues its march lower. The CEO of Russia’s largest oil producer said it will defend its traditional markets and doesn’t believe there will be any cooperation by crude exporting nations to cut output. Oil producers are aggressively defending their market share and are refusing to cut output in order to restore balance to a severely oversupplied marketplace. Even a drawdown in inventories from the EIA report today failed to sustain any rally. The EIA reported crude inventories fell by 754,000 barrels last week, this led to a spike rally to the high of the day at 29.22, before giving it all back and more as traders focused on a slightly larger build in gasoline (1.26mb on expectations of a 1mm b barrel build), a build in Cushing inventories (523k) and a build in Distillates (1.28mm). British Petroleum also said it expects inventories to continue to build in the 1st half of the year, and for storage tanks to be completely filled.
Crude oil started the day session on a negative note. It made a new low at 27.39, taking out the January lows of 27.57 in the process. After the EIA report, and crude failing to hold on to its rally, price broke down and took out the intraday low. It traded to 27.27, before recovering to settle at 29.45. Crude traded in a tight range after the settlement, then breaking down and making a new low at 27.24 and ending the electronic session at 27.33.
High – 29.22
Low - 27.24
Last - 27.33
Pivots for 2/11/16:
R2 29.91
R1 28.62
PIVOT 27.93
S1 26.64
S2 25.95