Crude Oil traded to new highs in the overnight session, reaching 32.74 before failing as supply concerns came roaring back into the picture. Saudi Aramco announced it hasn’t reduced its investments in energy projects and China’s diesel consumption fell for a fourth consecutive month, declining 5.6% in December.
The decline in diesel use is signaling to traders that China’s industrial activity may not show any growth in 2016. Traders also had a weekend to digest Mario Draghi’s stimulus comments and remain nervous with the FOMC meeting this week. The market’s 1:30 pm settlement price is 30.34, a 1.85 decline from Friday. Crude, however, continues to trade after the settlement price for the day is determined and it plunged to new lows. It traded down to 29.68 before ending the day at 29.80.
CLH16
High - 32.74
Low - 29.68
Last - 29.80
Pivots for 1/25/16:
R2 - 33.80
R1 - 31.80
PIVOT - 30.74
S1 - 28.74
S2 - 27.68