Crude oil fell nearly -4% to settled at 5015 after data showed that inventories rose more than expected in the US last week. Prices fell even further amid ongoing commitment from Saudi Arabia to make up for any shortfall should tensions between the West and Iran threaten global oil supply. The US EIA said in its weekly report earlier that US crude oil inventories rose by 8.53mbls in the week ended September 14, far outpacing market calls for an increase of 1mbls. Total US crude oil inventories stood at 367.6mbls as of last week. Oil prices came under heavy selling pressure earlier in the day, losing nearly $2 in a matter of minutes after the Turkish energy minister said he was in talks with Libya, Saudi Arabia and Russia about making up for the shortfall in Iranian oil imports. Meanwhile, concerns over the handling of the euro zone's sovereign debt crisis continued to weigh on market sentiment. Investors also remained jittery amid reports Spanish PM is uncertain about asking for help from the ECB's new bond-purchasing program, which would mean signing up to a permanent bailout fund. Intial support seen after BoJ's surprise decision to boost the size of its asset-purchase program by JPY10 trillion to a total of JPY80 trillion, in an effort to stimulate slowing economic activity and to counter the trengthening yen. Now technically market is getting support at 4940 and below could see a test of 4866 level, And resistance is now likely to be seen at 5152, a move above could see prices testing 5290.

Trading Ideas:

Crude trading range for the day is 4866-5290.

Crude oil hit by expectations about Saudi Arabia's efforts to push prices lower and crude stockpiles rose sharply.

Saudi Arabia is concerned about high oil prices and will take steps to moderate them

Energy Information Administration showed crude oil stockpiles jumped 8.5 million barrels