Crude oil ended higher as traders speculated that the Federal Reserve was poised to add liquidity to bolster a sputtering economic recovery and weekly inventory data would show a decline in domestic crude stocks. A low pressure system over the Bahamas and southern Florida could become a tropical depression in a few days as it moves west into the Gulf of Mexico, the U.S. National Hurricane Center said. Now support for the crude is seen at 3736 and below could see a test of 3717. Resistance is now likely to be seen at 3774, a move above could see prices testing 3793.

Trading Ideas:

Crude trading range is 3717-3793.

Crude oil ended higher as traders speculated that Federal Reserve was poised to add liquidity

Crude oil is taking support at 3736 and resistance at 3774 level

Low pressure system over Bahamas and southern Florida could become tropical depression