Oil prices gained shrugging off a modest rebound in dollar and weak housing data from the US, on expectations of a drop in crude inventories. The oil market is bracing for an unpredictable U.S. oil supply report from the Energy Information Administration, after two weeks where oil inventories plunged by a combined 10 million barrels. Oil inventories remain above normal even after the steep decline in the last two reports, as U.S. demand has struggled to recover from last year's recession. Now support for the crude is seen at 3628 and below could see a test of 3586. Resistance is now likely to be seen at 3695, a move above could see prices testing 3720.

Trading Ideas:

Crude trading range is 3586-3720.

Oil prices gained on expectations of a drop in crude inventories

Crude oil is taking support at 3644 and resistance at 3695 level

Today crude oil inventories: Exp: -1.1M Prev: -5.1M