Crude oil settled as a weaker dollar and geopolitical concerns in the Middle East and North Africa overshadowed demand worries in the face of slower U.S. economic growth. In the week to April 16, money managers increased their bets on higher U.S. crude oil prices to a combined record in New York and London. OPEC's largest producer boosted supply in February to above 9 million bpd to plug the gap in global markets left by fellow OPEC member Libya, where civil war cut exports. Saudi Arabia boosted capacity to 12.5 million barrels per day (bpd) in 2009, just as the global economic downturn cut demand. This left it with a supply cushion of over 4 million bpd, more than twice the cushion it targets of 1.5 million bpd to 2 million bpd. Now technically market is trading in the range as RSI for 18days is currently indicating 60.06, where as 50DMA is at 4843.76 and crude is trading above the same and getting support at 5038 and below could see a test of 5030 level, And resistance is now likely to be seen at 5059, a move above could see prices testing 5072.

Trading Ideas:

Crude trading range is 5030-5072.

Crude oil settled higher as a weaker dollar and geopolitical concerns overshadowed demand worries.

Crude looks to test support at 5020 and resistance is seen at 5078 level.

OPEC's largest producer boosted supply in February to above 9 million bpd to plug the gap in global markets left by fellow OPEC member Libya