Crudeoil settled down -0.91% at 6083 ahead of the Federal Reserve's rate decision and the official U.S. crude oil inventory data. The Federal Reserve, which concludes it two-day monetary policy meeting tomorrow, is widely expected to reduce its quantitative easing by $10 billion, cutting the size of the bond buying program to $25 billion per month. Earlier this month, Chairman Janet Yellen in her testimony before the Senate Banking Committee, indicated the Fed may raise interest rates sooner than expected if the recovery in the U.S. labor market is sustained. The U.S. EIA will release its weekly crude oil inventory data on Wednesday, While U.S. crude oil inventories fell by 4.4mbls in the week to July 25 to 369.4 million, compared with market expectations for a decrease of 1.5mbls, data from industry group the API showed on Tuesday. Meanwhile, traders continue to track developments in Ukraine and the Middle East. According to reports, Israel carried out 76 strikes since Monday, with Gaza's power plant being one of the targets. In eastern Ukraine, pro-Russian rebels are in for a setback with tougher sanctions on Russia. News reports indicate the European Union has agreed to a new set of sanctions on Russia, including limiting access to EU capital markets for Russian State-owned financial institutions and embargo on trade in arms. On Monday, crude oil futures ended lower despite lingering concerns over the ongoing unrest in Ukraine and the Middle East. Weak demand for crude oil in Europe and Asia, coupled with excess supply in the U.S. contributed to oil's decline. Technically market is under fresh selling and getting support at 6060 and below same could see a test of 6036 level, And resistance is now likely to be seen at 6114, a move above could see prices testing 6144.

Trading Ideas:

Crudeoil trading range for the day is 6036-6144.

Crude oil dropped amid concerns that this week's supply data will depict a U.S. economy that is awash in crude.

U.S. crude oil inventories fell by 4.4 million barrels to 369.4 million, compared with expectations for a decrease of 1.5 million barrels, data from API showed.

Today crude oil inventories: Exp: -0.5M Prev: -4.0M. Actual is at 8.00PM