Crude oil yesterday settled down by -0.9% at 5190 dropped down as investors avoided the commodity ahead of the release of weekly inventory data in the US on Wednesday. Fears of a supply glut allowed prices to dip, though a bullish take on the US economy from noted hedge fund manager David Tepper cushioned losses. The US Energy Information Administration will release weekly oil and gasoline stockpile data on Wednesday, and fears the numbers will show the country is awash in crude despite an improving economy allowed prices to soften on Tuesday. Wednesday's government report could show crude stockpiles rose by 200,000 barrels to hit levels not seen since 1982, according to market estimates. The US is the world's biggest oil consuming country, responsible for almost 22% of global oil demand. Prices also came under pressure from softer-than-expected output data out of China. Industrial production in the Asian giant rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month, which also pushed own oil prices. Meanwhile South Korea imported Iranian natural gas liquids for the second straight month in April, customs data showed, after having halted such shipments last July because of European Union sanctions restricting insurance on tankers carrying Iranian oil. Technically market is under fresh selling as market has witnessed drop in open interest by -7.33% to settled at 29362 while prices down -47 rupee, now Crudeoil is getting support at 51673 and below same could see a test of 5144 level, And resistance is now likely to be seen at 52203, a move above could see prices testing 5250.

Trading Ideas:

Crude trading range for the day is 5145-5251.

Crude oil dropped as investors looked ahead to key U. S. weekly supply data to gauge the strength of oil demand

IEA said rapidly increasing non-OPEC oil output would meet most of the world's extra oil demand over the next few years.

Today crude oil inventories; EXP: 0.5M PREV: 0.2M. Actual is at 8.00PM