Crude dropped sharply in the line of expectation fell by -4.63% at 4645 as disappointing economic data from China and Europe reinforced concerns about slowing growth, even after data showed US crude stocks fell and other supportive US data strengthened the dollar. Concerns about China and Europe allowed investors to shrug off any supportive sentiment that might have accrued from the US EIA's inventory report. The EIA said US crude stocks fell 482kbls last week, against forecasts stockpiles would be up 1.5 million. China, the world's manufacturing hub, has been showing signs of cooling lately. The HSBC China Manufacturing PMI recently came to 47.9 for Sept, up slightly from 47.6 in August. China's official factory purchasing managers' index hit 49.8 in September, up from 49.2 in August, according to the country's National Bureau of Statistics. Investors are growing increasingly anxious that the world economy may be demanding less goods and services out of China, which would crimp demand for oil and energy. Meanwhile in Europe, hopes persist that Spain will seek a bailout, but a lack of clear signals out of Madrid over intentions to seek rescue financing sent investors selling oil on Thursday, a growth-sensitive commodity. Now technically market is getting support at 4566 and below could see a test of 4488 level, And resistance is now likely to be seen at 4792, a move above could see prices testing 4940.

Trading Ideas:

Crude trading range for the day is 4488-4940.

Crude fell 4% as disappointing economic data from China and Europe reinforced concerns about slowing growth.

U. S. EIA said in its weekly report that U. S. crude oil inventories decreased by 0.5 million barrels in the week ended September 28.

Investors were also increasingly convinced that a dispute over Iran's nuclear programme would drag on.