Crude Oil recovered from 4571 the day's low settled higher at 4638 in the line of expectation bouncing off an 8-month low after Saudi Arabia’s oil minister said his country would not seek to raise output levels ahead of meeting of the OPEC in Vienna. Prices were lower intially as investors cut their exposure to riskier assets amid sustained concerns over the euro zone’s debt crisis. Oil prices hit the highest levels of the session after Saudi Arabia said his country would not ask for the OPEC to increase production levels at this week's meeting. The agency supplies nearly 40% of the world’s crude. OPEC most recently said it was pumping 32.4mbd of oil, a level not seen since the summer of 2008 and 2.4mbls more than the official 30mbls agreed to at the last meeting in Dec. But prices declined as the market took into account assurances from Saudi Arabia that it would make up for any supply shortfalls against the potential risk for the loss of oil from Iran. Oil prices were down sharply earlier as risk assets came under renewed pressure after the initial optimism which greeted news that Spain had secured a bailout for its banks faded and investors began to focus on the details of the rescue package. Now technically market is in oversold as RSI for 18days is currently indicating 28.44, and getting support at 4585 and below could see a test of 4533 level, And resistance is now likely to be seen at 4676, a move above could see prices testing 4715.

Trading Ideas:

Crude trading range for the day is 4533-4715.

Crude oil dropped as concerns persisted that the euro zone debt crisis will curb demand for oil.

Saudi Arabian Oil Minister Ali al Naimi said he was happy with OPEC's current oil output target.

Today crude oil inventories: EXP: -1.6M PREV: -0.1M. Actual is at 8.00PM