Crude oil fell sharply as traders latched onto an unexpectedly large build in gasoline inventories last week, shrugging off a surprise drawdown in crude inventories. U.S. crude stockpiles unexpectedly fell last week, according to data released Wednesday by the U.S. Department of Energy. The Energy Information Administration said crude oil inventories dropped by 471,000 barrels to 330.57 million barrels for the week ended January 15. Yesterday, industry data from the American Petroleum Institute showed a decrease of 1.8 million barrels. Now support for the crude is seen at 3507 and below could see a test of 3479. Resistance is now likely to be seen at 3587, a move above could see prices testing 3639.

Trading Ideas:

Crude trading range is 3480-3580.

Crude oil fell sharply due to an unexpectedly large build in gasoline inventories

Crude is getting support at 3520 and resistance at 3552.

Yesterday U.S. crude inventories came down by 0.4 million barrels against the 3.7 million barrels

SELL CRUDE FEB @ 3530-3540 SL 3556 TGT 3516-3502-3486.MCX