Crude Oil fell sharply nearly by -0.86% to settle at 4938 after ECB President disappointed investors hoping for decisive monetary policy action to contain the debt crisis in the euro zone. Speaking at the ECB’s post-policy meeting press conference, ECB President said the bank may undertake bond purchases in order to bring down the "exceptionally high" borrowing costs of stressed euro zone members, but provided no explicit details on how and when these activities may be carried out. Draghi also said that any such action by the ECB was conditional on euro zone governments experiencing difficulty on bond markets activating the bloc’s bailout funds to purchase government bonds and accepting strict conditions and supervision. Oil remained somewhat supported following a report from the US EIA showing that oil inventories decreased by 6.5mbls last week, far more than forecasts for a decline of 0.7mbls and the largest weekly drawdown since December. Also US Congress unanimously approved a new package of sanctions against Iran over its disputed nuclear program, which aim to penalize banks as well as insurance and shipping companies helping Tehran sell oil. Now technically market is getting support at 4893 and below could see a test of 4848 level, And resistance is now likely to be seen at 4995, a move above could see prices testing 5052.

Trading Ideas:

Crude trading range for the day is 4848-5052.

Crude oil slid on disappointment that ECB didn't announce new measures to stimulate euro-zone economy

Prices were supported by an expected cut in oil output in the North Sea and falling U.S. gasoline stocks.

Nigerian crude oil production hits 2.7 million barrels per day