Crude oil settled lower on persistent concerns that China will take steps to cool inflation, curbing demand from the world's biggest economic growth engine. Crude prices fell as worries about euro zone debt and Europe's economy added to doubts about oil demand. Prices came under early pressure from a stronger dollar, but the U.S. currency later weakened. U.S. government data showing an unexpected and large drop in domestic crude stocks last week failed to stem losses. U.S. Crude stockpiles fell 7.3 million barrels last week as imports dropped and refinery demand increased with more production units restarting after seasonal maintenance, U.S.  Energy Information Administration data showed. Now support for the crude is seen at 3717 and below could see a test of 3688. Resistance is now likely to be seen at 3797, a move above could see prices testing 3848.

Trading Ideas:

Crude trading range is 3688-3848.

Crude oil settled lower on persistent concerns that China will take steps to cool inflation

Crude looks to test support at 3718 and resistance is seen at 3772.

EIA said crude oil inventories fell by 7.3 million barrels to 357.6 million barrels in the week.