Crudeoil yesterday settled down -0.77% at 6409 after a report from the US government showed that oil supplies fell broadly in line with expectations last week, also pressure mounted as North Sea crude supply is expected to improve while worries about when the Federal Reserve will start paring back its US economic stimulus kept investors on the edge. The US EIA said in its weekly report that US crude oil inventories fell by 1.3mbls in the week ended August 2, in line with expectations for a decline of 1.2mbls. Total US crude oil inventories stood at 363.3mbls as of last week. The report also showed that total motor gasoline inventories increased by 0.1mbls, confounding expectations for a decline of 0.8mbls. Growing speculation the Federal Reserve will taper its bond-buying program at the central bank's upcoming meeting in September also weighed. Chicago Federal Reserve Bank Chairman Charles Evans said he would not rule out the withdrawal of stimulus measures at the bank's September meeting, echoing remarks by Dennis Lockhart, president of the Atlanta Fed earlier Tuesday. The central bank is scheduled to meet September 17-18 to review the economy and assess policy. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Market players now looked ahead to data scheduled for later in the week on China's trade balance as well as a report on inflation and industrial production, amid ongoing concerns over the Asian nation's economic outlook. Technically market is getting support at 6376 and below same could see a test of 6342 level, And resistance is now likely to be seen at 6464, a move above could see prices testing 6518.

Trading Ideas:

Crudeoil trading range for the day is 6342-6518.

Crude dropped as concern eased about supply disruptions and as a report showed U. S. crude inventories declined largely as forecast

U. S. Energy Information Administration said in its weekly report earlier Wednesday that U. S. crude oil inventories fell by 1.3 million barrels

Crude also came under pressure from an easing of the Middle East supply risk premium.