Crudeoil on MCX settled down -2.82% at 3208 on renewed concerns that increasing U. S. production and high inventories will thwart OPEC's attempts to reduce the global crude glut. Prices fell as doubts emerged over the effect of the OPEC/non-OPEC production cut by almost 1.8 million barrels per day (bpd) during the first half of the year. Saudi Arabia and Kuwait, key members of the Organization of the Petroleum Exporting Countries, favour extending their production-limiting deal with non-member producers into the second half of the year. Russia's Energy Minister Alexander Novak, however, declined to say whether the top oil producer would adhere to an extension before a joint meeting on May 25, saying global stocks were declining. "The situation has gradually been improving since the beginning of March," Novak said. Demand for crude oil is however set to rise in the coming weeks as refineries around the world return from seasonal maintenance ahead of peak summer demand. Also supporting the market, exports from OPEC member Iran, which was exempt from the cuts, are set to hit a 14-month low in May, suggesting the country is struggling to raise exports after clearing out stocks stored on tankers. Other producers that are not involved in the supply-curbing pact have increased exports. U. S. output has jumped almost 10 percent since mid-2016 to 9.25 million bpd, close to that of the world's top two producers, Saudi Arabia and Russia. Technically market is under fresh selling as market has witnessed gain in open interest by 21.13% to settled at 13782 while prices down -93 rupees, now Crudeoil is getting support at 3168 and below same could see a test of 3127 level, And resistance is now likely to be seen at 3277, a move above could see prices testing 3345.

Trading Ideas:

Crudeoil trading range for the day is 3127-3345.

Crude oil prices dropped on renewed concerns that increasing U. S. production and high inventories will thwart OPEC's attempts to reduce the global crude glut.

Prices seen pressure as doubts emerged over the effect of the OPEC/non-OPEC production cut by almost 1.8 million barrels per day (bpd) during the first half of the year.

Saudi Arabia and Kuwait, favour extending their production-limiting deal with non-member producers into the second half of the year.