Crude oil jumped again in the line of expectation and settled at 4824 with a gain of +1.02% as support seen from government report indicating oil supplies declined significantly more than expected last week. The US EIA said in its weekly report that US crude oil inventories declined by 4.3mbls in the week ended June 29, compared to expectations for a decline of 1.9mbls decline. US crude supplies dipped by 0.1mbls in the preceding week. Initially we have seen crude prices jumped after China's central bank cut interest rates for the second time in two months in an effort to boost slowing growth economy. Whereus global central banks remained in focus. The ECB cut its benchmark interest rate to a record low 0.75% in July, in a bid to bolster faltering growth in the region. Market sentiment came under pressure after ECB President said that the economic outlook faces downside risks, adding that indicators for the Q2 point to weakening growth in the euro zone. Draghi said that there was probably a "renewed weakness in economic growth" in the last three months, with "heightened uncertainty”. Meanwhile Brent prices jumped on news that Norway’s top oil producer Statoil would start shutting down production at its North Sea fields after its dispute with the unions over pensions hit a deadlock. The company said the shortfall in production would amount to 1.2mbpd of oil equivalent. Now technically market is getting support at 4768 and below could see a test of 4711 level, And resistance is now likely to be seen at 4890, a move above could see prices testing 4955.

Trading Ideas:

Crude trading range for the day is 4711-4955.

Crude gains after the U. S. EIA’s weekly inventory report showed a bigger-than expected drop in crude oil stocks last week.

Oil prices jumped earlier after China's central bank cut interest rates to boost slowing growth economy.

Brent prices jumped on news that Norway’s top oil producer Statoil would start shutting down production.