Crude ended in positive on Saturday on some short covering on weekend after prices declined Friday following China's decision to tighten bank-reserve requirements, as worries persisted that an interest-rate increase could follow. The International Energy Agency warned in its monthly report Friday that the Chinese economy was in danger of overheating. Inflation in China is "creeping up," the group said, warning that the surging global oil demand growth seen in 2010 on the back of Chinese growth is likely to give way to more moderate growth next year. Now support for the crude is seen at 3962 and below could see a test of 3958. Resistance is now likely to be seen at 3972, a move above could see prices testing 3978.

Trading Ideas:

Crude trading range is 3958-3978.

Crude ended in positive on Saturday on some short covering on weekend after prices declined Friday

Crude looks to test support at 3930 and resistance is seen at 3992.

IEA raised its 2011 global crude oil demand forecast for a third month