April Crude Oil Higher Overnight

April crude oil was higher overnight due to short covering as it consolidates some of Monday's decline.

Stochastics and the RSI are turning bearish hinting that sideways to lower prices are possible near term.

If April extends Monday's decline, February's low crossing at 37.12 is the next downside target.

Closes above last week's high crossing at 45.30 are needed to confirm that a short term low has been posted.

First resistance is the overnight high crossing at 43.57.

Second resistance is last week's high crossing at 45.30.

First support is Tuesday's low crossing at 39.44.

Second support is February's low crossing at 37.12.



10:30 AM ET. Feb 27 US Energy Dept Oil Inventories

Crude Oil Stocks (previous 351.3M)

Crude Oil Stocks (Net Change) (expected +900K; previous +700K)

Gasoline Stocks (previous 215.3M)

Gasoline Stocks (Net Change) (expected -1M; previous -3.4M)

Distillate Stocks (previous 141.6M)

Distillate Stocks (Net Change) (expected -1.4M; previous +800K)

Refinery Usage (expected 81.5%; previous 81.4%)

Market Events To Watch For Wednesday, U.S. Energy Department Inventories

10:30 AM ET. Feb 20 US Energy Dept Oil Inventories

Crude Oil Stocks (previous 350.6M)

Crude Oil Stocks (Net Change) (expected +300K; previous -200K)

Gasoline Stocks (previous 218.7M)

Gasoline Stocks (Net Change) (expected -100K; previous +1.1M)

Distillate Stocks (previous 140.8M)

Distillate Stocks (Net Change) (expected -1.4M; previous -800K)

Refinery Usage (expected 82.2%; previous 82.3%)

Crude Inventory Numbers Spike Up

Crude oil inventory numbers took a big jump up on Wednesday with crude levels up more than 6 million barrels. A much larger gain then analyst predicted. This combined with a potential cease fire in the middle east has crude dropping more than $3.00 per barrel within minutes of inventory numbers being released at 10:30 eastern time.

Congratulations to all the traders out there that went short yesterday or this morning, make sure to take your profits. The DXO [long crude] traders will surely be looking at this as a buying opportunity and will be more than happy to strip your profits from you. First support is $44.05.

As I click the publish button on this blog post crude has fell $3.83.....is this fun or what?