Crude Oil surged higher and settled with a gain of +0.86% at 5384 level as increased euro zone central bank intervention speculation boosted demand for the commodity complex. Crude oil sentiment strengthened after the UK’s Telegraph newspaper said earlier that it could confirm weekend reports that the ECB may set a cap on peripheral euro zone bond yields at its next policy meeting in Sep. Meanwhile, investors were eyeing a series of upcoming euro zone meetings, amid hopes that leaders would make some progress on steps to the stem the crisis in the region. Market participants were also anticipating the minutes of the Fed’s August policy meeting later in the week. Upbeat US economic data released last week indicated that the economy may be stabilizing and tempered expectations for another round of QE by the Fed. The API will release its inventories report later in the day, while government report could show crude stockpiles rose by a modest 0.1mbls. Renewed fears over escalating violence in Syria and lingering tensions between Iran and the West have also been supporting prices in recent weeks. Now technically market is getting support at 5347 and below could see a test of 5311 level, And resistance is now likely to be seen at 5414, a move above could see prices testing 5445.

Trading Ideas:

Crude trading range for the day is 5311-5445.

Crude rose as hopes that ECB will act to contain the debt crisis and tensions in Middle East boosted prices

Iran's biggest oil buyers, China and India, sharply cut their imports in July as the pressures from sanctions build

Today crude oil inventories: EXP: 0.1M PREV: -3.7M. Actual is at 8.00PM