Crudeoil yesterday settled up 0.25% at 5300 supported by expectations that the Federal Reserve may not be ready to ease monetary support, but gains were limited by caution over the demand outlook and a key jobs report later in the week. Support seen after the American Petroleum Institute said U.S. oil inventories fell by 7.8 million barrels last week. Gasoline supplies fell 1.3 million barrels while distillate supplies jumped by 241,000 barrels. The more widely weekly inventories data from the U.S. Energy Department is due out later Wednesday. On Tuesday, the U.S. Commerce Department reported earlier that the U.S. trade gap widened 8.5% in April to USD40.3 billion from USD37.8 billion in March, though the figure did come in below estimates for a USD41 billion deficit. US imports rose 2.4% in April to USD227.7 billion, while exports increased 1.2% to USD187.4 billion. The Energy Information Administration says oil production in the U.S. has jumped 26% in just the past two years and some market participants believe production in the U.S. will exceed imports this year. The shale boom in places such as North Dakota, Texas and other parts of the U.S. is helping drive the production surge. In unadjusted terms, U.S. oil imports in April were the lowest in nearly two decades, proving the world’s largest oil consumer is reducing foreign imports. Canada is the because exporter to the U.S., but the U.S. does import from OPEC members such as Nigeria and Venezuela. Now Crudeoil is getting support at 5245 and below same could see a test of 5191 level, And resistance is now likely to be seen at 5344, a move above could see prices testing 5389.

Crudeoil trading range for the day is 5191-5389.

Crude oil ended with gains supported by expectations that the Federal Reserve may not be ready to ease monetary support.

Support seen after the American Petroleum Institute said U.S. oil inventories fell by 7.8 million barrels last week.

Gasoline supplies fell 1.3 million barrels while  distillate supplies jumped by 241,000 barrels.

The more widely weekly inventories data from the U.S. Energy Department is due out later at 8.00PM.