Crude rallied as traders cheered reports suggesting a better outlook for the U.S. economy. The economic data helped crude rebound after a two-week retreat from over $88 a barrel, as investors looked to the possibility of increasing demand for gasoline and other fuels. Crude stocks rose 1.03 million barrels last week, the U.S. Energy Information Administration said, against a forecast for inventories to be down 2.1 million barrels. The increase was much less than the 5.1 million barrel rise reported by the American Petroleum Institute late on Tuesday. Now support for the crude is seen at 3770 and below could see a test of 3699. Resistance is now likely to be seen at 3878, a move above could see prices testing 3915.

Trading Ideas:

Crude trading range is 3699-3915.

Crude oil prices ended higher getting support from improving US data.

Crude looks to test support at 3816 and resistance is seen at 3878.

EIA said US commercial crude stockpiles rose by 1.0 million barrels to 358.60 million barrels