Crudeoil on MCX settled down -1.03% at 3351 after OPEC said that its production had risen to its highest level in at least eight years and following reports of an increase in U. S. crude stockpiles. Traders said oil markets had come under pressure after Organization of the Petroleum Exporting Countries (OPEC) reported a rise in production, despite the producer cartel having plans, potentially with non-OPEC producer Russia, to cut output in a bid to rein in a global supply overhang. OPEC on Wednesday reported its oil production rose in September to the highest in at least eight years and raised its forecast for 2017 non-OPEC supply growth, pointing to a larger surplus next year despite the group's deal to cut output. The producer cartel pumped 33.39 million barrels per day (bpd) last month, according to figures OPEC collects from secondary sources, up 220,000 bpd from August. The American Petroleum Institute (API) late Wednesday said crude inventories rose by 2.7 million barrels last week, following a 7.6 million draw in the previous report and that capped substantial inventory draws for the previous three weeks. A draw of 1.35 million barrels was reported at Cushing and distillates fell by 4.5 million barrels, Gasoline inventories rose by 700,000 barrels. The U. S. Energy Information Administration (EIA) is due to publish official storage inventory data later on Thursday. Technically market is under long liquidation as market has witnessed drop in open interest by -9.6% to settled at 15281 while prices down -35 rupee, now Crudeoil is getting support at 3320 and below same could see a test of 3288 level, And resistance is now likely to be seen at 3400, a move above could see prices testing 3448.

Trading Ideas:

Crudeoil trading range for the day is 3288-3448.

Crude oil dropped after OPEC said that its production had risen to its highest level in at least eight years.

OPEC reported its oil production rose in September to the highest in at least eight years and raised its forecast for 2017 non-OPEC supply growth

The producer cartel pumped 33.39 bpd last month, according to figures OPEC collects from secondary sources, up 220,000 bpd from August.