Crude Oil rose and settled at 4773 in wake of US government data showing oil supplies dropped unexpectedly last week, suggesting demand for fuels and energy is on the rise in the world's largest economy. The US EIA reported earlier that US crude oil inventories dropped by 4.7mbls vs 1.15mbls. The news sent oil climbing, as the sharp drop in oil inventories came at a time of cooling economic indicators and increased output in ally producing nations such as Saudi Arabia. The BoJ is expected to hold off on further policy easing despite slowing global growth that drove other major central banks into expanding stimulus, convinced that robust domestic demand will keep the country's economic recovery on track. Meanwhile, the Fed released the minutes of its latest monetary policy meeting, providing no clear indication that the US central bank is more willing to stimulate the economy via easing measures. The Fed's empathy fueled some selling, as easing measures tend to send dollar-denominated commodities rising by weakening the greenback. However, a lack of willingness to intervene also suggested the Fed is still willing to sit on the sidelines to see how recovery goes on its own, which suggested some confidence in the US economy even though it is battling increasingly strong headwinds. Now technically market is getting support at 4713 and below could see a test of 4652 level, and resistance is now likely to be seen at 4813, a move above could see prices testing 4852.

Trading Ideas:

Crude trading range for the day is 4652-4852.

Crude oil rose after data showing oil supplies dropped unexpectedly last week, suggesting demand is on rise

EIA reported that U.S. crude oil inventories dropped by 4.7 million barrels

Iraq pumped 2.984 million barrels a day in June, outpacing Iran’s 2.963 million