Crude Oil edged lower and dropped by -0.62% at 4832 as a series of recent market assessments suggest demand for crude is sputtering amid economic weakness. Pressure mounting after IEA cut its 2012 oil demand growth forecast, saying it now expects oil demand to grow 700kbd this year, as the weak global economy weighs on demand. The weakening demand picture comes as oil supply remains ample, despite recent sanctions on Iran. Oil production in the US is at a record high, according to the EIA. Saturday, the OPEC said during a meeting with the IMF that it expects the market to remain well supplied into next year. Oil prices have been on a steady downward trend in recent months, as economic troubles in Europe and a tepid recovery in the US curb demand for oil and refined products like gasoline. Underpinning prices, however, is the threat of supply disruptions due to intensifying unrest in the Middle East. Meanwhile, the prospect of a conflict with Iran over its nuclear intentions continues to add a premium to oil prices. Over the weekend, the EU gave its formal approval to a fresh package of sanctions against Iran, voicing "serious and deepening concerns" over Iran's nuclear program and the expansion of its uranium enrichment activity. Now technically market is getting support at 4782 and below could see a test of 4732 level, And resistance is now likely to be seen at 4885, a move above could see prices testing 4938.

Trading Ideas:

Crude trading range for the day is 4732-4938.

Crude dropped as worries over weak global oil demand tempered positive Chinese and U.S. data.

Prices were also hurt as the International Energy Agency last week cut its demand growth forecast for next year.

Both OPEC and the U.S. Energy Information Administration cut 2013 forecasts for growth in world oil demand this month