[BillPaay]

each day we have seen crude move $2-3. Yesterday's EIA report gave bears what they needed to push crude through the important trend line/100-d m.a. that has held up so well for the past few months. Crude traded through $69.55 to a low of $68.04 before settling at $68.97. From here we are looking for intraday support at $68 to hold, otherwise we will sell breaking this level down to $66.50 (support for the November contract, but keep an eye on the $67.60 level as this is where it comes in for the continuous contract). The next support level comes in at $65. Over the long term, we remain bullish but are waiting for this market to correct down to the mid-$60's before taking on more length. With inventories now out of the way, we look for the dollar to dictate market direction today.

Yesterday's EIA report showed builds across the complex (crude +2.8mm, distillates +3mm, and gasoline +5.4mm). The distillates number will be key in the weeks to come as refiners exit maintenance season and demand will show whether or not economic activity has picked up enough. Distillate cracks held up surprisingly well yesterday after the report, strengthening slightly.