Crude oil advanced and rallied by +1.47% to settle at 5229 for the first time in four days as the euro strengthened against the dollar. Also support seen after Chinese crude oil imports rose to the third highest daily rate on record, and overall exports and imports were much stronger than expected, accelerating signs of a rebound in the world's second biggest oil consumer. Oil was also supported by tensions in the Middle East and enduring worries about oil supply from the region. Iranian supreme leader Ayatollah Ali Khamenei on Thursday rejected a U. S. offer for bilateral talks, compounding concern about the most prominent oil market risk factor. Currently US-Iran contact is limited to talks between Tehran and a so-called P5 1 group of powers on Iran's disputed nuclear program that are to resume on Feb. 26 in Kazakhstan. Supply concerns were exacerbated when attackers blew up Yemen's main oil export pipeline on Friday, halting the flow of crude, an official working for the state-run Safer oil company said. EU leaders reached an agreement on a seven year budget on Friday. European governments will contribute slightly less to this budget than they did for the previous seven year budget, following calls to curb spending by Brussels. Investors were also monitoring political developments in the euro zone, amid uncertainty ahead of upcoming elections in Italy and renewed political tensions in Spain where the government has become embroiled in a corruption scandal. Now technically market is getting support at 5161 and below could see a test of 5092 level, And resistance is now likely to be seen at 5266, a move above could see prices testing 5302.

Trading Ideas:

Crude trading range for the day is 5092-5302.

Crude gains after ECB official said euro wasn't overvalued, which sparked demand for the single currency and sent dollar falling.

U. S. commercial crude oil stockpiles are expected to have increased 2.9 million barrels last week

OPEC crude oil output has fallen in September because of reduced exports from Angola and Nigeria