Crude oil may contracts on NYMEX closed yesterday at $82.17 with a gain of 2.7 percent. Yesterday economic data from Euro zone came better than market estimates and supported prices to trade higher. Economic data from US in the form of personal income remained unchanged while personal consumption rose as per expectations. Oil prices rose yesterday mainly on account of a weaker dollar and on expectation that DOE report in the week may show demand to be recovering. DOE report tomorrow is expected to show oil inventories building up by 2.5 million barrels while gasoline and distillate inventories are expected to decline by 2 million and 1.25 million barrels respectively. The data is expected to have a slightly positive impact on prices. OUTLOOK: Economic data from Germany in the form of import price index may show the presence of inflation and may result in euro weakening and consequently could result in oil prices trading lower. From the US S & P case shiller home price index is declining and may indicate the housing sector may be slow to recover which may not support prices. Consumer confidence index by the confederate board may however help prices trade higher on account of improved confidence among US consumers. TECHNICAL RECOMMENDATIONS April futures crude oil prices were initially seen trading flat near 3640 levels and failed to breach the support of 3630 and later on reversed its trend onto higher side. Market made a high of 3725 and settled the day at 3706 levels. Prices are expected to trade higher and recommend buying on dips for the day.

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