Crudeoil on MCX settled down -0.66% at 3143 because of investor concerns that OPEC-led supply cuts were not yet reducing record U. S. crude inventories. Traders said the slight lift in prices came as a report that Saudi Arabia's crude exports to the United States in March would fall by around 300,000 barrels per day (bpd) from February, in line with OPEC's agreement to reduce supply. The United States imported about 1.3 million bpd of Saudi oil in February, according to U. S. Energy Information Administration data. In the United States, overseas oil suppliers like Saudi Arabia have to compete against rising shale drilling, which has pushed up U. S. oil production by over 8 percent since mid-2016 to more than 9.1 million bpd. Despite OPEC’s high level of compliance with agreed production cuts last November, non-OPEC producers that joined the global deal to reduce output have yet to fully implement production cuts while U. S. crude inventories swelled to record highs. Eleven non-OPEC oil producers that joined a global deal to reduce output to boost prices delivered 64% of promised cuts in February, an industry source said last Friday. Meanwhile, U. S. crude oil stockpiles rose to an all-time high of 533.1 million barrels for the week ended March 15, the Energy Information Agency (EIA) said Wednesday. Crude prices have continued to fall and are on track to end the week close to levels not seen since the OPEC deal on Nov 30. Technically market is under fresh selling as market has witnessed gain in open interest by 5.88% to settled at 22611 while prices down -21 rupees, now Crudeoil is getting support at 3119 and below same could see a test of 3096 level, And resistance is now likely to be seen at 3176, a move above could see prices testing 3210.

Trading Ideas:

# Crudeoil trading range for the day is 3096-3210.

# Crude dropped because of investor concerns that OPEC-led supply cuts were not yet reducing record U. S. crude inventories.

# The U. S. EIA said in its weekly report that crude oil inventories rose by 5.0 million barrels last week to an all-time high of 533.1 million.

# OPEC agreed in November last year to curb its output by about 1.2 million barrels per day between January and June.