Crudeoil on MCX settled down -1.57% at 3566 dropped as fears concerning rising U. S. crude inventories eased, following a report of further OPEC cuts. Crude oil prices lost more than 1% as investors feared the EIA’s weekly report on crude oil inventories due on Wednesday, would reveal that U. S. crude stockpiles rose faster than expected, after bucking the trend last week. Also pressure seen after the US stockpiles rose 2.5mbls in the week to Feb. 24, according to a report from trade group the API. Gasoline stockpiles rose unexpectedly and distillate stockpiles fell more than expected, the API said. Crude declined slightly on the report. Although OPEC production cuts continued to offer support. The OPEC has cut its oil output for a second month in February, a Reuters survey found on Tuesday, allowing the exporter group to boost already strong compliance with agreed supply curbs on the back of a steep reduction by Saudi Arabia. In February, supply from the 11 OPEC members with production targets under the deal has averaged 29.87mbpd, down from a revised figure of 29.96mbpd in January and 31.17mbpd in December, according to the Reuters survey. The continued effort by OPEC and other producers including Russia to tackle the supply glut in the industry came against fresh concerns that rising U. S. crude production may curtail the oil cartel and other producers' efforts. Crude oil trader will also look to U. S. President Donald Trump’s speech at Congress in Washington, D. C. He is expected to touch on plans for overhauling the tax code, boosting military spending, and revamping the health insurance system. Technically market is getting support at 3541 and below same could see a test of 3515 level, And resistance is now likely to be seen at 3611, a move above could see prices testing 3655.

Trading Ideas:

# Crudeoil trading range for the day is 3515-3655.

# Crude oil lost more than -1.5% on the ground of rising US oil output, while OPEC production cuts continued to offer support.

# API inventory data reported a build of 2.5mbls while gasoline inventories recorded an unexpected build of 1.84mbls

# A Russian news agency reported that non-OPEC Russia is expected to show a 117,000 barrel reduction in February from the previous month.