Crudeoil on MCX settled down -1.77% at 3545 in response to growing evidence that U. S. production is rising and as some investors unwound positions ahead of OPEC's first report on compliance with its deal to cut production. OPEC’s January oil production fell by 890,000 barrels a day compared with December, the cartel said Monday, confirming that its members have so far largely complied with an agreement to slash output. Data from secondary sources showed that the cuts agreed on Nov. 30 by the Organization of the Petroleum Exporting Countries have been implemented. Production from OPEC members in January was 32.139 million barrels a day compared with 33.29 million b/d in December. However, Libya and Nigeria— which are exempt from the cuts—both increased production last month so production from participating members actually fell by 1.032 million b/d in January, from 30.945 million b/d to 29.913 million b/d. U. S. oil drillers have added most drilling rigs since 2012 over the past month, bringing the total count to 591 rigs, the most since October 2015, Baker Hughes said in its weekly report. This rise in U. S. activity comes just as some oil producers are reducing output to reverse global oversupply in a bid to prop up prices. The Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, agreed late last year to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017. Technically market is under fresh selling as market has witnessed gain in open interest by 9.83% to settled at 11054 while prices down -64 rupees, now Crudeoil is getting support at 3518 and below same could see a test of 3491 level, And resistance is now likely to be seen at 3591, a move above could see prices testing 3637.

Trading Ideas:

# Crudeoil trading range for the day is 3491-3637.

# Crude oil dipped on signs that global fuel markets remained bloated despite OPEC-led crude production cuts.

# OPEC: January oil output falls 890,000 bpd month/month to 32.14 mbpd as group implements supply cut deal

# OPEC report implies global oil market will see zero average surplus in 2017 vs 985,000 bpd surplus implied in previous report