As noted in last week’s review, here, the response at the structural low, 95s, was in fact key to this week’s auction. The market auctioned up this week toward the Avg Weekly Range High area, 97.10s, here where the market encountered supply driving the market down through the trade cluster to the key structural support, 95s.
The market broke down through that support, as price discovery drove the market back into the lowest Jan trade cluster, 92.40s-94.40s, as inferred last week. The market achieved a stopping point at/near 92.45s, closing at/near 93.10s. IF the 92.50s hold as support, then expectation for balance from 92.50s-95.00/60s before the next directional phase. IF 92.50s fail, price discovery lower to the major structural support, 91.50s.
Source: EIA (Feb 2013)