Crude Oil turned lower and settled down by -0.69% at 5101 as the dollar index recovered from early losses and entered positive territory amid caution ahead of a speech by Bernanke. Tuesday’s turnaround coincided with the euro trimming its gains against the US dollar as investors turned jittery ahead of a speech by Fed Chief Ben Bernanke later in the trading day. It will be his first public appearance since the minutes of the FOMC meeting were released earlier this month, which raised speculation the central bank will end its quantitative easing program earlier than expected. Oil traders were also focusing on China’s economic outlook. Government data last week showed that China’s trade surplus widened unexpectedly in December, adding to signs of recovery in the world’s second largest economy. Chinese exports grew 14.1% from a year earlier in December, blowing past expectations for a 5% gain and up from a 2.9% increase in November. Market players were now looking ahead to a report on fourth quarter gross domestic product to be released on Friday, along with data on industrial production and retail sales. The spread between the two contracts narrowed to a four-month low following the restart of the Seaway pipeline on Friday, which was shut since January 2 to complete a major expansion. Now technically market is getting support at 5064 and below could see a test of 5027 level, And resistance is now likely to be seen at 5151, a move above could see prices testing 5201.

Trading Ideas:

Crude trading range for the day is 5027-5201.

Crude oil turned lower as dollar index recovered from losses and entered positive territory amid caution ahead of a speech by Bernanke.

A cut in Saudi Arabian production last month, pipeline sabotage in Yemen and weather-related drop in Iraqi shipments have reduced output

Saudi Arabia cut production substantially in December to around 9 million barrels per day.