Crudeoil settled down -1.42% at 2847 tracking weakness from Nymex Crude oil which dropped to end at a new four-month low on Thursday dropped 1.1 percent, to settle at $44.66 a barrel amid continued worries of a global supply glut, notwithstanding an official data from the EIA that showed crude stockpiles in the U.S. to have declined more than expected last week. There was little reaction to news that U.S. inventories dropped last week. The EIA said U.S. commercial inventories fell by 4.4 million barrels. Also US rigs may be in line for a further reduction amid low prices, although reports say shale oil producers have been successful in cutting down costs to give traditional producers a run for their money. However, the OPEC continues to ramp up production and Iranian oil expected to overwhelm markets as sanctions are lifted following a nuclear deal between Tehran and the West. On the economic front, first-time claims for U.S. unemployment benefits saw some further upside in the week ended August 1, following the rebound seen in the previous week, a Labor Department report showed Thursday. Initial jobless claims edged up to 270,000, an increase of 3,000 from the previous week's unrevised level of 267,000. Meanwhile Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the OPEC last year not to cut production. Market players now looked ahead to Friday's U.S. nonfarm payrolls report. Technically market is under fresh selling as market has witnessed gain in open interest by 8.54% to settled at 25661 while prices down -41 rupee, now Crudeoil is getting support at 2817 and below same could see a test of 2787 level, And resistance is now likely to be seen at 2886, a move above could see prices testing 2925.

Trading Ideas:

Crudeoil trading range for the day is 2787-2925.

Crude oil dropped below $45 to test multi-month lows as investors awaits indications on how prolonged the current period of oversupply will be.

There was little reaction to news that U.S. inventories dropped last week. EIA said U.S. commercial inventories fell by 4.4 million barrels.

Industry research group Baker Hughes said Friday that the number of rigs drilling for oil in the U.S. increased by five last week to 664, the second straight weekly gain.