Oil climbed to a 27-month high after supplies dropped more than forecast and the S&P’s 500 Index increased on signals European officials are stepping up efforts to solve the debt crisis. Support had been seen from the Energy Department said stockpiles fell 2.15 million barrels to 333.1 million last week, the lowest level since February. The OPEC has no reason to call an emergency meeting even as oil climbs above $90 a barrel because the market is well-balanced and doesn’t need further supply asper Iran’s OPEC governor. The group decided at its last meeting to maintain its production target of 24.845 million barrels a day, set in 2008.Now technically market is trading in the range as RSI for 18days is currently indicating 57.42, where as 50DMA is at 3973.54 and crude is trading above the same and getting support at 4119 and below could see a test of 4085 level, And resistance is now likely to be seen at 4177, a move above could see prices testing 4201.

Trading Ideas:

Crude trading range is 4085-4201.

Crude jumped almost 1% on efforts to solve the debt crisis & stockpiles fell by 2.15mbls.

OPEC decided to maintain its production target of 24.845 mbls a day, set in 2008.

The Energy Department said stockpiles fell 2.15 million barrels to 333.1 million last week, the lowest level since February.

SELL CRUDE JAN @ 4155 SL 4175 TGT 4135-4115-4095.MCX

Crude $ is Trading at : 92.03$