There's a lot of oil around.
From Futures Magazine:
The Energy Department said crude output rose 11,000 barrels a day to 6.52 million last week, the most since December 1996. Thus the crude oil futures market has taken a beating this morning, down almost 3% as of this writing. Technically, we note that the key upper pivot levels of $94 and $93 have held prices down nicely and now we look to the next downside target of $88 to be hit. $93 is our key level we are watching closely here.
If supplies continue to hold at high levels, and crude can stay below $93, our longer term level to be potentially approached is $82. $82 was the breakout point for the rally which started in late June 2012 and ended when prices jumped above $100 in September, but couldn’t hold the rally beyond the key level of $100. Oil can make big moves very fast, so we would not be surprised to see more sellers come in to bring this market lower....MORE
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