Crudeoil settled up 0.54% at 6745 as support seen from the rupee which plunged to a record low on Wednesday on heavy dollar demand from importers and as traders fretted over mixed signals from the central bank over its efforts to prop up the currency without choking off economic growth. While NYMEX Crude oil slipped after minutes from the Fed's July meeting did little to alter expectations that the US central bank could start tapering its economic stimulus next month. Following the Fed minutes, it now appears evident the central bank will slow its USD85 billion-per-month bond-buying program at some point this year. "A few members emphasized the importance of being patient and evaluating additional information on the economy before deciding on any changes to the pace of asset purchases," according to the Fed minutes. That can be interpreted as some Fed members wanting to take a wait-and-see approach to tapering. However, "Almost all participants confirmed that they were broadly comfortable" with the committee reducing "the pace of its securities purchases later this year," the minutes indicated. Most market participants expect tapering to arrive as soon as September, though some see the Fed pushing it off until December. The central bank added it expects the US economy to continue improving in the second half of this year. Also on Wednesday, US EIA said in its weekly report that US crude oil inventories fell by 1.4mbls in the week ended August 16, outpacing expectations for a decline of 1mbls. Total US crude oil inventories stood at 359.1mbls as of last week. Technically market is getting support at 6654 and below same could see a test of 6563 level, And resistance is now likely to be seen at 6817, a move above could see prices testing 6889.

Trading Ideas:

Crudeoil trading range for the day is 6563-6889.

Crude oil gains supported by supply disruptions in Libya and data showed that U. S. oil supplies fell more-than-expected last week.

Energy Information Administration said in its weekly report that U. S. crude oil inventories fell by 1.4 million barrels.

About half of Libya's more than 1.2-million-barrel-per-day export capacity remains shut down due to civil unrest.