Crudeoil on MCX settled up 1.77% at 3167 after a severe disruption to Libyan oil supplies supported a rebound in oil prices while comments from officials suggesting OPEC could extend its current deal beyond June lifted sentiment. Armed factions have blocked production at the western Libyan oilfields of Sharara and Wafa, reducing output by 252,000bpd, about a third , said a source at the National Oil Corp (NOC). NOC has declared force majeure on crude loadings from those oilfields. Meanwhile Hedge funds haven’t been so sceptical on rising WTI crude oil prices since 29 November, the day before the OPEC agreed to cut output, according to US CFTC data. Their net-long position, or the difference between bets on a price increase and wagers on a decline, has dropped 37% from a record touched last month as American crude oil production climbed, sending inventories to an all-time high. The net-long position on WTI crude oil dropped 9.8% in the week ended 21 March, following a record decline in the previous week, according to CFTC. Overall sentiments remain weak as pressure can be seen after US crude stocks rose a more than expected 1.91mbls, the API said late Tuesday, with gasoline stocks down a less than expected 1.10mbls and distillates down a more than expected 2.04mbls. While Supplies at the oil storage hub of Cushing, Oklahoma, fell 580,000 barrels. Today traders will be eyeing on the U.S. EIA will release official data on inventories. Updated estimates for inventories show expectations of a 1.357mbls build in crude, a 1.234mbls fall in distillates, and a 1.886mln drop in gasoline stocks. Technically market is getting support at 3135 and below same could see a test of 3102 level, And resistance is now likely to be seen at 3190, a move above could see prices testing 3212.

Trading Ideas:

# Crudeoil trading range for the day is 3102-3212.

# Crude oil rallied amid word that Libya has halted the pipeline from its biggest field.

# The OPEC member will see output down 252,000 bpd due to armed protests.

# OPEC is expected to extend its supply quota plan with Russia through 2017 in hopes of ending the global supply glut.