Crudeoil settled up 0.42% at 6865 rose on Wednesday after bargain hunters snapped up nicely-priced positions and erased losses stemming from bearish US supply data and a diminishing likelihood of a US attack on Syria. Crude oil prices saw downward pressure earlier after US President Barack Obama said his administration would support a Russian plan to seize Syria's chemical weapons and put military strikes on hold, which allayed fears that US attacks would draw the broader Middle East into conflict and threaten global crude supply. Elsewhere, the US Energy Information Administration said in its weekly report that US crude oil inventories fell by 219,000 barrels in the week ended Sept. 6, less than expectations for a decline of 1.5 million barrels. Total US crude oil inventories stood at 360.0 million barrels as of last week. The report also showed that total motor gasoline inventories increased by 1.658 million barrels, confounding expectations for a decline of 1.25 million barrels, which sent crude prices to levels ripe for bottom fishing. Investors turned their attention to next week's Federal Reserve monetary policy meeting that begins Tuesday, Sept. 17. Doubts persist as to whether the Fed will announce plans to begin tapering its monthly USD85 billion asset-purchasing program. Lackluster economic indicators have many investors concerned the US central bank may delay plans to begin scaling back asset purchases to later this year, while others feel a September start date will see very minor tapering, which would keep the dollar soft. A soft greenback makes oil an attractive buy on dollar-denominated exchanges. Technically market is getting support at 6804 and below same could see a test of 6744 level, And resistance is now likely to be seen at 6916, a move above could see prices testing 6968.

Trading Ideas:

Crudeoil trading range for the day is 6744-6968.

Crude oil gained after bargain hunters snapped up nicely-priced positions and erased losses stemming from bearish US supply data

The U. S. Energy Information Administration said in its weekly report that U. S. crude oil inventories fell by 0.2 million barrels

Easing fears of any immediate military action in Syria also added to the selling pressure.