Crude oil fell sharply in the line of expectation and settled down by -1.35% at 4902 as risk appetite weakened amid mounting concerns over the outlook for global growth, amid weak German numbers and Spanish fears. A recent rally spurred by a series of stimulus measures by major central banks around the world in a bid to bolster their economies appears to have faded, with investors shifting their focus back to concerns over the global economy. Renewed concerns over Greece also added to the risk-off trade environment, after German magazine Der Spiegel reported over the weekend that the country faces a EUR20 billion budget shortfall, almost twice as much as previously thought. Brent prices continued to come under pressure from recent comments made by Saudi Arabia, that they are likely to keep output high in an effort to lower prices further weighed on the energy complex. Market see that the market is now balancing Saudi assurances that it would make up for any supply shortfalls against the potential risk for the loss of oil from Iran amid tighter Western sanctions on Tehran over its disputed nuclear program. Now technically market is in oversold as RSI for 18days is currently indicating 28.33, and getting support at 4875 and below could see a test of 4849 level, And resistance is now likely to be seen at 4944, a move above could see prices testing 4987.

Trading Ideas:

Crude trading range for the day is 4849-4987.

Crude oil prices fell after disappointing German economic data heightened concern about the global economy

Nigeria is to due sell around 2.12 million barrels per day (bpd) of crude oil in November

Escalating tension in the Middle East continued to limit oil's price erosion