Crudeoil on MCX settled up 3.53% at 3083 surged in yesterday session tracking Nymex Crude while settled up by 3.30% at $45.93/bbl amid speculation Russia will join OPEC nations in curbing production if the cartel can reach an agreement in Algiers this week. Meanwhile, turmoil in Nigeria threatens output from the African nation, although Shell has yet to confirm attacks on its facilities there. In economic news, the Commerce Department reported a sharp pullback in new home sales in the month of August. The report said new home sales tumbled by 7.6 percent to an annual rate of 609,000 in August after surging up by 13.8 percent to a revised 659,000 in July. While Money managers are growing increasingly skeptical that the OPEC will reach an agreement. Hedge funds, pension funds and others added 50,558 bets on lower oil prices in the week ended last Tuesday, according to CFTC data. That is the highest weekly number since the CFTC began tracking the data in 2006, and it easily exceeds the second- and third-largest weekly increases in bearish bets, which also came this summer and were both less than 40,000. Money managers also shrunk their net-long position by 28% to 147,467, its lowest since early August. The positioning came just days before oil futures posted Friday their biggest daily loss in two months on skepticism that the world’s largest exporters can cooperate and ease a supply glut that has dragged down prices for two years. Technically market is under short covering and getting support at 3011 and below same could see a test of 2939 level, And resistance is now likely to be seen at 3122, a move above could see prices testing 3161.

Trading Ideas:

Crudeoil trading range for the day is 2939-3161.

Crude oil rallied on chance of OPEC action to support prices.

Producers will gather in Algeria to discuss ways to support prices, with nervous trade driving volatility to its highest.

Scepticism about a deal being reached in Algiers had prompted money managers to cut their bullish bets to a one-month low last week.