Crudeoil settled down -2.05% at 2818 fell sharply to slump to near-two months low as investors awaited the release of the API's weekly crude stockpile report after the bell for further indications on the supply-demand imbalance in domestic energy markets. Yesterday the API late Tuesday said crude stocks last week jumped 4.1mblss last week, well above the 3mbls gain seen, and one week after reporting a surprising build of 7.1mblss. Separately, Wednesday's government report could show that U.S. crude stockpiles rose by 3.0mblss. Last week, the US EIA reported that crude stockpiles surged by 8mbls for the week ending on Oct. 16. At 476.6mbls, US crude oil inventories remain near levels not seen for this time of year in at least 80 years. US crude production, meanwhile, remained unchanged for the week at 9.096mbpd. A week earlier, output fell by 76,000 bpd to its lowest level. Oil prices are down by more than 40% since OPEC roiled global energy markets last year by leaving its production ceiling unchanged as a mechanism for defending its market share. While OPEC production is expected to remain level until early-December when the world's largest cartel is scheduled to meet next. While smaller OPEC members such as Venezuela are expected to push for raising the floor on crude prices to $70 a barrel, they still lack the clout to overrule Saudi Arabia. Over the last year, Saudi has depressed global prices in an apparent strategy to force US shale producers to slash output. Technically market is getting support at 2783 and below same could see a test of 2747 level, And resistance is now likely to be seen at 2864, a move above could see prices testing 2909.

Trading Ideas:

Crudeoil trading range for the day is 2747-2909.

Crude oil prices continued to plunge dropping more that -2% to the lowest since late August amid mounting global supplies.

API said crude stocks last week jumped 4.1mbls last week, well above the 3mbl gain seen, and one week after reporting a surprising build of 7.1mbls.

US crude production, remained unchanged for the week at 9.096mbpd. A week earlier, output fell by 76kbpd to its lowest level on the calendar year.