Crude oil ended lower as the dollar rose, curbing risk trades, and doubts emerged on whether the reported tax-cut extension deal between Democrats and Republicans would push through. The Energy Information Administration, in its latest monthly forecast, said it expected world oil consumption to rise 1.43 million barrels per day next year, down 10,000 bpd from the 1.44 million bpd increase it projected last month. World oil demand is expected to reach 87.78 million bpd next year compared with 86.35 million bpd in 2010 and U.S. consumption will rise next year by about 200,000 bpd to 19.26 million bpd, the EIA said. Now support for the crude is seen at 3950 and below could see a test of 3917. Resistance is now likely to be seen at 4039, a move above could see prices testing 4095.

Trading Ideas:

Crude trading range is 3917-4095.

Crude oil ended lower as the dollar rose and tax deal doubts

Crude looks to test support at 3950 and resistance is seen at 4016.

Today crude oil inventories: Exp: -1.3M Prev: 1.1M