Crudeoil on MCX settled down -0.75% at 3586 on lingering doubts over the extent of OPEC cuts, with sentiment worsened by concerns over the health of the Chinese economy after it reported the steepest falls in exports since 2009. Record Chinese crude imports of 8.56 million barrels per day (bpd) in December helped to buoy prices somewhat, but they could not hide underlying fears over the overall health of the world's second-biggest economy. Despite China's oil thirst, overall exports -- the country's economic backbone -- declined by 7.7 percent last year in what was the second annual decline in a row and the worst since the depths of the global crisis in 2009. Exports of Chinese refined oil products last month rose nearly 25 percent year on year to a record 5.35 million tonnes, well above November's previous record of 4.85 million tonnes. On the supply side, there was some market support from top crude exporter Saudi Arabia, which said that its output had fallen below 10 million bpd to levels last seen in February 2015 and that it expects to make even deeper cuts next month. The U. S. Energy Information Administration said in its January outlook that it expects Brent and WTI to average $53 and $52 a barrel respectively in 2017. Even if OPEC cuts its output as agreed, traders said that rising U. S. shale output and increasing supply from OPEC members Nigeria and Libya, which were exempt from the pact, might offset any reductions. Technically market is under long liquidation as market has witnessed drop in open interest by -7.91% to settled at 8536 while prices down -27 rupee, now Crudeoil is getting support at 3559 and below same could see a test of 3531 level, And resistance is now likely to be seen at 3622, a move above could see prices testing 3657.

Trading Ideas:

Crudeoil trading range for the day is 3531-3657.

Crude oil dropped on lingering doubts over the extent of OPEC cuts, with sentiment worsened by concerns over the health of the Chinese economy.

Exports of Chinese refined oil products last month rose nearly 25 percent year on year to a record 5.35 million tonnes.

On the supply side, there was some market support from top crude exporter Saudi Arabia, which said that its output had fallen below 10 million bpd.