Crude oil fell as a stronger dollar reduced the appeal of commodities and on speculation that U. S. inventories increased. Oil dropped 0.5 percent as the dollar climbed against the euro after China took steps to curb lending and as Greece’s bonds tumbled. Prices also decreased on speculation that a government report will show a third consecutive gain in crude stockpiles.

An Energy Department report tomorrow will probably show that crude oil supplies climbed 2.2 million barrels in the week ended Jan. 15 from 331 million the prior week. Now support for the crude is seen at 3572 and below could see a test of 3552. Resistance is now likely to be seen at 3620, a move above could see prices testing 3648.

Trading Ideas:

Crude trading range is 3540-3650.

Crude oil fell on stronger dollar on speculation that U. S. inventories increased

China's crude oil imports in 2010 will likely increase by 12%-15%

Today crude oil inventories: Exp: 2.2M Prev: 3.7M

SELL CRUDE FEB @ 3600-3610 SL 3638 TGT 3576-3558-3536.MCX