Crudeoil on MCX settled down -0.12% at 3444 as prices gave back some of its gain on some ground in yesterday session tracking weakness from NYMEX Crude which slid by $0.29 to settled at $53.11 a barrel after reaching a one-month high of $53.76 a barrel as traders cashed in on the recent strength despite a report from the EIA showing an unexpected drop in crude oil inventories. Yesterday the US EIA early Wednesday reported that domestic crude supplies fell by 2.2mbls for the week ended April 7, after climbing in each of the previous three weeks. Crude stockpiles have only posted two weekly declines this year to date, according to EIA data. While a day earlier the API late Tuesday reported a 1.3mbl decline, according to sources. In a monthly report released Wednesday, the OPEC said its member output continued to fall in March, but the group also said raised its 2017 forecast for supply growth in the U.S. by 200,000 barrels a day. The EIA’s weekly report revealed a rise of 36,000bpd in last week’s total U.S. crude production to 9.235mbls a day. In its short-term outlook report released Monday, the EIA said it expects to see record U.S. oil production in 2018. Prices were boosted earlier on Wednesday following reports that Saudi Arabia has told officials from the OPEC that it wants to extend an agreement to cut output for another six months when the group meets in May. Technically market is getting support at 3424 and below same could see a test of 3405 level, And resistance is now likely to be seen at 3470, a move above could see prices testing 3497.

Trading Ideas:

Crudeoil trading range for the day is 3405-3497.

Crude oil prices dropped as prices gave back some of its gain despite bullish data showing a surprise inventory draw.

EIA said in its weekly report that crude oil inventories fell by 2.166 million barrels in the week ended April 7.

Prices were boosted earlier after the reports that Saudi has told officials from the OPEC that it wants to extend an agreement to cut output.