Crudeoil on MCX settled down -0.77% at 3500 on profit booking but prices rallied heavily in the week following OPEC's decision to cut crude output to rein in a global glut that has weighed on prices for more than two years. The market focus now shifts to the implementation and impact of OPEC's first production agreement since 2008, which will be joined by non-OPEC producers, after data showed output in Russia rose in November to a post-Soviet high. The Organization of the Petroleum Exporting Countries, which accounts for a third of global oil supply, will reduce production starting in January by 1.2 million barrels per day, or over 3 percent, to 32.5 million bpd. Russia also agreed to cut output by 300,000 bpd. Russia and other non-OPEC producer are set to meet with OPEC on Dec. 9. Russia said that its output in November rose slightly to 11.21 million barrels per day, a post-Soviet high. As part of the OPEC deal, Russia has promised to gradually cut its crude output by up to 300,000 barrels per day in the first half of 2017. With cuts only being implemented next year against end-2016 levels, sources said there was still a possibility that oversupply, which has halved oil prices since 2014, remains in place next year. President-elect Trump has also promised to open up previously prohibited lands to oil exploration and drilling once he is in office, just 50 days from now. Technically market is under long liquidation as market has witnessed drop in open interest by -7.49% to settled at 8445 while prices down -27 rupee, now Crudeoil is getting support at 3452 and below same could see a test of 3405 level, And resistance is now likely to be seen at 3529, a move above could see prices testing 3559.

Trading Ideas:

Crudeoil trading range for the day is 3405-3559.

Crude oil prices fell on profit booking after the biggest weekly rally since 2009 following OPEC's decision to cut crude output.

Russia and other non-OPEC producer are set to meet with OPEC on Dec. 9.

Russia said that its output in November rose slightly to 11.21 million barrels per day, a post-Soviet high.