Crudeoil settled down -0.15% at 6074 after an official weekly oil report from the EIA showed U. S. crude stockpiles to have declined more than expected last week, although supplies of gasoline and distillates increased. Reports of additional tougher sanctions on Russia by the U. S. and EU for its support to separatists in Ukraine offset gains after some strong U. S. economic growth data. It is therefore unlikely that Russia would curb its oil shipments in retaliation to the sanctions by the U. S. and the EU.

Yestreday, a report from the U. S. EIA showed U. S. crude oil inventories to have dropped 3.7mbls in the week ended July 25 against 2.2mbls. Also data from the API Tuesday evening showed U. S. crude inventories to have declined by a larger than expected 4.4mbls last week. A Commerce Department report showed U. S. GDP for the Q2 rebounded more than anticipated, after reporting a notable contraction in economic activity in the first quarter. U. S. GDP grew 4.0% in the Q2 following a revised 2.1% decrease in the first quarter, with economists anticipated a 3.0% rise. Meanwhile, employment in the U. S. private sector registered a notable growth in July, albeit below expectations, a report from payroll processor ADP showed.

The Fed further tapered its QE plan on Wednesday, noting the U. S. economy has rebounded in the second quarter. As expected, the Fed will reduce its asset purchases by another $10 billion, cutting its monthly asset buying program to $25 billion, in line to wind down its bond buying plan with a $15 billion purchase in October. Technically market is getting support at 6041 and below same could see a test of 6009 level, And resistance is now likely to be seen at 6125, a move above could see prices testing 6177.

Trading Ideas:

Crudeoil trading range for the day is 6009-6177.

Crude oil fell despite a larger-than-expected decline in US crude supplies and heightened geopolitical tensions.

A weekly report released by the U. S. EIA showed crude inventories fell by 3.7 million barrels last week, while gasoline and distillate stocks rose.

U. S. crude oil exports reached 288,000 barrels per day in May, the highest levels since April 1999, data from U. S. EIA showed