Crude oil prices stabilized on Tuesday after dropping more than 3% on Monday. Prices were buoyed following a report from the National Oceanic Atmospheric Administration that showed that cold weather is beginning to infiltrate into the mid-west section of the United States. Natural gas prices shot up 10% on Monday which in turn help buoy heating oil prices and crude oil.
On Tuesday evening the American Petroleum Institute will release its estimate of petroleum inventories. Last week the private institution showed that crude oil stockpiles decline by a greater than expected number which foreshadowed the Wednesday estimate by the Department of Energy which help push crude oil prices higher.
Prices appear to have held above support levels near the 10-day moving average at 36.52. Resistance on crude oil is seen near the 38.26. Momentum on crude oil prices remains positive with the MACD (moving average convergence divergence) index printing in the black with an upward sloping trajectory that is pointing to higher prices.