Crudeoil on MCX settled up 0.77% at 3644 amid ongoing signs that major oil producers are sticking to their pledge to cut back output. U. S. crude stocks rose 2.9 million barrels at the end of last week, more than the 2.8 million barrels build expected, estimates from the American Petroleum Institute (API) released showed. API also said gasoline stocks rose 4.8 million barrels and distillate supplies gained 2.0 million barrels with supplies at the Cushing, Oklahoma, oil hub down 100,000 barrels at the end of last week. U. S. oil production has risen by more than 6 percent since mid-2016, though it remains 7 percent below the 2015 peak. It is back to levels reached in late 2014, when strong U. S. crude output contributed to a crash in oil prices. The push by Republicans in the U. S. House of Representatives for a shift to border-adjusted corporate tax could push U. S. crude prices higher than the global benchmark Brent, triggering large-scale domestic production, according to analysts at Goldman Sachs. Oil prices have received support from plans by the Organization of the Petroleum Exporting Countries (OPEC) and other producers to reduce output in a bid to boost prices. Around 1.5 million barrels per day (bpd) has already been taken out of the market from about 1.8 million bpd agreed by oil majors starting on Jan. 1, energy ministers said, as producers look to reduce oversupply. Bernstein Energy said global oil inventories declined 24 million barrels to 5.7 billion barrels in the fourth quarter of last year from the previous quarter. Technically now Crudeoil is getting support at 3612 and below same could see a test of 3579 level, And resistance is now likely to be seen at 3668, a move above could see prices testing 3691.

Trading Ideas:

# Crudeoil trading range for the day is 3579-3691.

# Crude oil edged higher amid ongoing signs that major oil producers are sticking to their pledge to cut back output.

# Saudi Arabia's oil output is likely to drop to around 9.9 million bpd in January, according to industry sources and shipping data.

# U. S. crude stocks rose 2.9 million barrels more than the 2.8 million barrels build expected, estimates from the American Petroleum Institute (API) showed.