Crudeoil settled up 4.32% at 7507 after Republican lawmakers said they planned to support US President Obama's calls for limited military strikes against Syria in response to Damascus's alleged use of chemical weapons in its civil war. Key Republican lawmakers including House Speaker John Boehner said earlier they'd support a presidential call to unleash the US military on Syria via limited air or missile strikes, which could engulf the broader Middle East in conflict and threaten supply. Fears that bipartisan support for military action against Syria boosted prices as did US data. Support seen in the prices as Indian rupee fell below 68 to the dollar to near record lows on Tuesday after S&P's said there was a more than one-in-three chance of a ratings downgrade for the country and as fears of war in the Middle East roiled global markets. While in the US earlier, the ISM reported earlier that its August PMI rose to 55.7 from 55.4 in July. The data supported prices by painting a picture of a more robust US economy that will demand more fuel and energy going forward. On the flipside, the report also cemented views held by many that the Fed could start to unwind its USD85 billion monthly bond-buying program at its upcoming Sept. 17-18 policy meeting. Also Monthly asset purchases weaken the greenback to spur recovery as long as they remain in effect, which makes oil an attractive buy in dollar-denominated exchanges, though fears persist that oil may lose its appeal once the Fed begins to scale back stimulus measures. Technically market is getting support at 7271 and below same could see a test of 7036 level, And resistance is now likely to be seen at 7630, a move above could see prices testing 7754.

Trading Ideas:

Crudeoil trading range for the day is 7036-7754.

Crude oil rallied as President Obama won support from leaders of both parties in the House of Representatives for a limited strike against Syrian forces.

Crude gained steam after reports showed demand picked up in the U. S. manufacturing sector and growth was steady in China's services sector

A possible missile strike on Syria returned investor focus to a potential supply disruption in the region