Crudeoil settled down -1.78% at 6070 as worries about supply losses in the Middle East and North Africa eased. Oil has weakened over the last month but the market remains nervous about further supply shocks. IEA said that oil output remained at risk in several key producing regions. Global oil demand growth will accelerate next year as the world economy expands and will again be met by rising supplies from the United States and Canada, further eroding OPEC's market share.

But the International Energy Agency (IEA) said in its monthly report that risks to oil production in several regions remained acute. Making its first forecasts for 2015 in a monthly report, the IEA which advises major consuming nations on energy policy, said it expected global oil demand to grow by 1.4 million bpd next year, up from 1.2 million this year. The world's second largest oil consumer, China, will see oil demand growing by 4.2 percent, up from 3.3 percent this year, while the largest oil user, the United States, will only see gains of 0.2 percent to 19.1 million barrels per day, up from a growth of 0.6 percent this year.

The IEA said it expected non OPEC supply growth to average 1.2 million bpd next year, in line with increases in 2013 and 2014. North America will remain the leader in 2015, contributing about two thirds of the net non OPEC supply increase compared to 85 percent in 2014. Technically market is under fresh selling as market has witnessed gain in open interest by 9.68% to settled at 8545, now Crudeoil is getting support at 6017 and below same could see a test of 5963 level, And resistance is now likely to be seen at 6164, a move above could see prices testing 6257.

Trading Ideas:

Crudeoil trading range for the day is 5963-6257.

Crude oil prices dropped as worries about supply losses in the Middle East and North Africa eased.

Oil has weakened over the last month but the market remains nervous about further supply shocks.

The International Energy Agency said that oil output remained at risk in several key producing regions.