Crudeoil settled up 1.74% at 3041 as indications of strong demand for gasoline overshadowed a report showing increased U.S. crude inventories. The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 2.6 million barrels in the week ended September 4. The oil price fall was compounded after the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, decided last November to keep output high in favour of market share over prices. "In the first half of 2015, Saudi Arabia exported on average 4.4 million barrels per day (b/d) of crude oil to seven major trading partners in Asia, making up more than half of Saudi Arabia's total crude oil exports over that period," the U.S. Energy Information Administration (EIA) said. "Even as global crude oil prices fell in 2014 and 2015, Saudi Arabia increased production and kept its export levels high, enabling it to maintain its market share in these countries," the EIA added. As for other news, the latest surveys showed that OPEC oil production amounted to 31.26 million bpd in August, still above its own ceiling of 30 million bpd. The EIA said Saudi Arabia exported on average 4.4 million bpd of crude oil to seven major trading partners in Asia during the first half of this year, making up more than half of Saudi Arabia's total crude oil exports over that period. Technically market is under short covering as market has witnessed drop in open interest by -11.41% to settled at 16994 while prices up 52 rupee, now Crudeoil is getting support at 2953 and below same could see a test of 2865 level, And resistance is now likely to be seen at 3097, a move above could see prices testing 3153.

Trading Ideas:

Crudeoil trading range for the day is 2865-3153.

Crude oil prices rallied as indications of strong demand for gasoline overshadowed a report showing increased U.S. crude inventories.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 2.6 million barrels in the week ended September 4.

The EIA lowered its crude oil price forecasts for this and next year, hurting the sentiment on the commodity market.