Crude Oil rallied nearly +1.61% to settled at 4721 as inflamed tensions between Turkey and Syria reinforced fears about potential supply disruptions and on a weaker dollar as the euro strengthened after ECB President restated that the central bank was ready to start purchasing the debt of troubled euro zone states earlier in the day, despite his bearish growth comments. Speaking at the ECB’s post-policy meeting press conference earlier in the day, Draghi said the central bank was ready to undertake OMT when the prerequisites are in place. The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision. Market sentiment had been bolstered by hopes that Spain will soon request a bailout and trigger the ECB’s bond purchasing program, a move which investors hope would ease the debt crisis in the region. Turkey stepped up retaliatory artillery strikes on a Syrian border town, killing several Syrian soldiers, while its parliament approved further military action in the most serious case of cross-border escalation in the 18-month conflict in Syria. The EU is poised to ban imports of Iranian gas as part of a set of new measures to ratchet up pressure on Tehran over its nuclear programme. Now technically market is getting support at 4637 and below could see a test of 4553 level, And resistance is now likely to be seen at 4771, a move above could see prices testing 4821.

Trading Ideas:

Crude trading range for the day is 4553-4821.

Crude rose as inflamed tensions between Turkey and Syria, a weaker dollar and refinery fires pulled crude oil prices higher.

Also supporting crude, U.S. inventory levels unexpectedly dropped last week despite an increase in imports.

Geo-political concerns include a dispute in Middle East over nuclear programme in Iran that triggered tough sanctions from US