Crude Oil trimmed earlier losses and settled at 4977 gained by +0.60% following the release of mostly upbeat US economic data, but a lack of progress in negotiations for a deal to avoid a US budget crisis before a January deadline continued to weigh. Meanwhile, the Federal Reserve Bank of Philadelphia said in a report earlier that its manufacturing index rose to an eight month high of 8.1 vs -10.7 and separate report showed that US existing home sales rose more than expected in November. Also the US House of Representatives cleared the way for debate and votes on a proposal, dubbed "Plan B," that Republicans are advancing in response to the automatic spending cuts and higher taxes that could hit the economy next year, should Congress and the Obama administration fail to agree on how to deal with the nation's budget deficit. House Speaker John Boehner said he expects to keep working with President Obama to avert the year-end "fiscal cliff", while advancing his party's proposal, which will raise taxes only on incomes over $1 million. Data from the US EIA published on Wednesday provided underlying support for heating oil futures after it showed strong demand and lower inventory levels. A bi-monthly report from the EIA showed the world's spare oil production capacity rose slightly over the last two months although stocks were depleted due to a seasonal demand. Now technically market is getting support at 4793 and below could see a test of 4760 level, And resistance is now likely to be seen at 4847, a move above could see prices testing 4868.

Trading Ideas:

Crude trading range for the day is 4900-5028.

Crude oil gained supported by data showing the U.S. economy grew faster than previously thought in the third quarter

In the Middle East, oil shipments from autonomous Iraqi region Kurdistan have fallen to around 5,000 bpd at the start of the week

Oil remained under pressure as deadline for budget agreement at the end of year comes closer with no sign of deal yet.