Crudeoil settled down -0.53% at 6215 paring gains as investors digested Fed Chair Janet Yellen's comments that the U. S. central bank was on track to keep reducing its policy stimulus. Distillate stocks, including heating oil and diesel fuel, are expected to drop by 2.3 million barrels in the week to Feb. 7, a survey showed before weekly inventory reports from the American Petroleum Institute and the Energy Information Administration. However gains were capped by expectations of a further increase in Libyan output. The North African nation's current production is around 600kbpd, up from its average rate in January. Oil production from key U. S. shale deposits are expected to rise in February and March, according to forecasts issued by the EIA issued. Enterprise Oil, the largest propane shipper in the U. S., started to increase propane supplies to the Northeast and Midwest on Monday following a mandate by a federal regulator. However, the possibility of milder weather next week curbed demand for heating oil in recent days, even as another snowstorm is expected in the U. S. Northeast this week. Crude inventories could continue to rise as U. S. oil production from shale plays is expected to accelerate in February and March, the EIA said. Shale oil production will rise by 63kbpd in February and another 64,000 bpd in March, according to forecasts from the EIA issued. Technically market is under long liquidation as market has witnessed drop in open interest by -6.55% to settled at 11560 while prices down -33 rupee, now Crudeoil is getting support at 6194 and below same could see a test of 6174 level, And resistance is now likely to be seen at 6248, a move above could see prices testing 6282.

Trading Ideas:

Crudeoil trading range for the day is 6174-6282.

Crude oil dropped after Fed Chair Janet Yellen's comments that the U. S. central bank was on track to keep reducing its policy stimulus.

Crude inventories could continue to rise as U. S. oil production from shale plays is expected to accelerate in February and March

Today crude oil inventories: EXP: 2.5M PREV: 0.4M. Actual is at 9.00PM