Crudeoil settled down -4.44% at 2710 dropped tracking weakness from Nymex Crude oil which dropped toward $40 a barrel to settle with a loss of more than 4% to settle at $41.27 a barrel after a US government reported an unexpected weekly climb in crude-oil inventories. Nymex Crude prices sank after the US EIA reported an increase of 2.6mbls in crude supplies for the week ended August 14. While the American Petroleum Institute Tuesday said supplies declined 2.3 million barrels. Gasoline supplies fell 2.7mbls while distillate stockpiles climbed by 600kbls last week, according to the EIA. While from the Minutes of the Federal Open Market Committee's latest policy meeting, released before the oil-price settlement Wednesday, showed that most Fed officials believe economic conditions needed for a rate hike were "approaching." Crude prices saw little support from the U. S. dollar sell off after the FOMC minutes, while the structural oversupply in crude oil remains the key concern for the market. The bearish sentiment is also visible in the long-term derivatives market. Contracts for delivery of crude oil in the future on the big commodities markets such as the NYME and the ICE show the price of oil for delivery in five years' time has collapsed in recent months, implying that traders do not expect a price recovery any time soon. As Global oil production is outpacing demand following a boom in U. S. shale oil production and after a decision by the OPEC last year not to cut production. Technically market is getting support at 2639 and below same could see a test of 2569 level, And resistance is now likely to be seen at 2810, a move above could see prices testing 2911.

Trading Ideas:

Crudeoil trading range for the day is 2569-2911.

Crude oil plunged over 4 percent to end at a six-year low after official weekly crude oil inventory data from the US EIA.

EIA said US crude oil inventories increased 2.6mbls in the week ended August 14.

Saudi Arabia exported 7.365mbpd in June, up from 6.935 million bpd in May, figures published by the Joint Organisations Data Initiative (JODI) showed.