Crudeoil settled down -0.40% at 5675 dipped as ample supplies diminished concerns over oil-producing geopolitical hotspots and the prospects of faster economic growth in the US. Yesterday weekly official oil report from the U.S. EIA showed crude stockpiles in the U.S. to have dropped more than expected last week. Nonetheless, the gains were checked after data indicated ample supplies in the U.S. with stockpiles at Cushing, Oklahoma rising by 508kbls to 20.7 million last week. Despite the ongoing issues north of Iraq, shipments of oil has been largely maintained from south of the country. Meanwhile, Libya too has lifted its oil exports notwithstanding the turmoil in Tripoli with fighting amongst several militant groups. Yesterday a report from the U.S. EIA showed U.S. crude oil inventories to have dropped 2.1mbls in the week ended August 22. The EIA report showed U.S. crude oil inventories at 360.50mbls, end last week. Gasoline stocks dropped by 1.0mbls last week. Inventories of distillate, including heating fuel, rose 1.3mbls last week. A report from the API late Tuesday showed crude inventories to have declined by a less than expected 1.3mbls in the week ended August 22. Investors continued to monitor closely the developments in Ukraine and the Middle East. The situation continues to be tense in Ukraine even after the Ukrainian President and Russian President met in Belarus for the first time since June. Reports say Putin has threatened economic sanctions on Ukraine for signing a trade accord with the EU. Meanwhile, Ukraine has released a video footage of the Russian paratroopers it had detained on Tuesday. Technically market is getting support at 5654 and below same could see a test of 5633 level, And resistance is now likely to be seen at 5710, a move above could see prices testing 5745.

Trading Ideas:

Crudeoil trading range for the day is 5633-5745.

Crude prices slipped despite a bullish weekly supply report, as the data revealed that inventories rose at a key U.S. delivery point.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 2.1 million barrels

Global oil supplies have been ample for much of the summer, despite violence in OPEC members Iraq and Libya.