Crudeoil settled up 1.05% at 6180 on demand from bargain hunters who felt prices had fallen too far on global supply expectations, while upbeat U. S. jobless claims numbers also supported. OPEC expects its share of the world oil market to shrink in 2015 for a third year running, due in part to the U. S. shale oil boom, giving the exporter group little comfort from an acceleration in global demand. Making its first 2015 forecast in a monthly report, the Organization of the Petroleum Exporting Countries said demand for its oil next year would average 29.37 million barrels per day (bpd), down 310,000 bpd from 2014.

The report by the 12-member OPEC points to ample supplies next year, especially if there is further progress in resolving outages in OPEC countries Libya, Iraq and Iran. Those production problems have curbed supply this year and helped support prices above $100 a barrel. OPEC also forecast a recovery in demand next year as economic growth gathers pace, predicting that world oil use will expand by 1.21 million bpd, up from this year's 1.13 million bpd increase. But non-OPEC supply, the source of two in every three barrels, is expected to increase next year by 1.31 million bpd, more than demand, with the United States leading the way.

OPEC expects U. S. production to average 13.12 million bpd in 2015, up 880,000 bpd from 2014 and the highest increase of all non-OPEC countries. Technically market is under short covering as market has witnessed drop in open interest by
-24.82% to settled at 7791 while prices up 64 rupee, now Crudeoil is getting support at 6107 and below same could see a test of 6035 level, And resistance is now likely to be seen at 6220, a move above could see prices testing 6261.

Trading Ideas:

Crudeoil trading range for the day is 6035-6261.

Crudeoil settled up on demand from bargain hunters who felt prices had fallen too far on global supply expectations

OPEC expects its share of the world oil market to shrink in 2015 for a third year running, due in part to the U. S. shale oil boom.

Making its first 2015 forecast in a monthly report, the OPEC said demand for its oil next year would average 29.37 million barrels per day