Crudeoil settled up 0.39% at 6194 gained but moved in choppy trading after investors digested conflicting weekly U.S. supply reports. The U.S. EIA said in its weekly report that U.S. crude oil inventories decreased by 2.6mbls in the week ended June 6, surpassing expectations for a decline of 1.9mbls. Total U.S. crude oil inventories stood at 386.9mbls as of last week. The report also showed that total motor gasoline inventories increased by 1.7mbls, compared to forecasts for a gain of 0.9mbls, while distillate stockpiles rose by 0.9mbls, compared to expectations for an increase of 1.2mbls. Industry data, however, painted a different picture of the U.S. energy sector. The API on Tuesday reported that gasoline stocks fell by 441kbls compared with expectations for a 843kbls gain. The API also said that crude stocks rose by 1.45mbls versus forecasts of a decrease of 1.9mbls. Meanwhile, the OPEC said on Wednesday that it would keep its official production target unchanged at 30mbls a day, as widely expected. Meanwhile Crude trader are eyeing on Iraq update as an armed uprising in Iraq led by a masked terror group could ratchet up global oil prices just after the OPEC agreed to stick with its cap on production Wednesday. Crude oil futures may see support as the latest violence in Iraq rattled the market. Brent crude hit $110 a barrel after Islamic militants advanced on Iraq’s biggest oil refinery, a day after they took control of Mosul. Technically market is under fresh buying and getting support at 6174 and below same could see a test of 6154 level, And resistance is now likely to be seen at 6219, a move above could see prices testing 6244.

Trading Ideas:

Crudeoil trading range for the day is 6154-6244.

Crudeoil settled up but moved in choppy trading after investors digested conflicting weekly U.S. supply reports.

Crude oil futures may see support as the latest violence in Iraq rattled the market.

EIA said in its weekly report that U.S. crude oil inventories decreased by 2.6mbls vs -1.9mbls in the week ended June 6.