Crude Oil turned sharply higher rising for the first time in four days as signs US political leaders may be closing in on a budget deal to avoid the looming "fiscal cliff" boosted appetite for riskier assets. Traders continued to monitor developments surrounding the looming “fiscal cliff” in the US, approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. House of Representatives Speaker John Boehner said Wednesday that he remained hopeful Republicans could forge an agreement with the White House to avert the budget crisis. President Barack Obama later said he believed a "framework" for an agreement can be reached before Christmas. There are fears the US economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline. The optimistic comments prompted investors to shun safe haven assets, such as the US dollar and flock to riskier assets, like stocks and commodities. Oil found further support after weekly data from the US Energy Department on Wednesday showed that crude oil supplies fell unexpectedly by 0.34 million barrels last week, compared to expectations for an increase of 0.31 million barrels. The US is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. Now technically market is getting support at 4799 and below could see a test of 4760 level, And resistance is now likely to be seen at 4876, a move above could see prices testing 4914.

Trading Ideas:

Crude trading range for the day is 4760-4914.

Crude gains on optimism that a U.S. budget deal can be reached and concerns about oil supply disruptions

Oil output from OPEC member countries has declined in November to its lowest since January because of disruptions to Nigerian output

OPEC is likely to keep its current output target of 30 million barrels per day when its members meet next month