Crudeoil on MCX settled up 2.78% at 3472 after the U. S. Energy Information Administration reported an unexpectedly large U. S. oil inventory drawdown last week. Crude oil inventories fell by 5.2 million barrels last week, the EIA said. That was compared to forecasts for a stockpile build of 2.7 million barrels after a build of 4.9 million barrels in the previous week. Total U. S. crude oil inventories stood at 468.7 million barrels as of last week. The report also showed that gasoline inventories rose by 2.469 million barrels, compared to expectations for a decline of 1.31 million barrels, while distillate stockpiles dropped by 1.24 million barrels, compared to forecasts for a decrease of 1.55 million. Saudi Arabian Energy Minister Khalid al-Falih said that oil markets were at the end of a considerable downturn as fundamentals were improving and supply and demand were rebalancing. He called on non-OPEC producers to help stabilise the market saying their role was as critical as the role of OPEC members. As the world's largest exporters prepare to discuss the first cut in output in eight years next month, the pressure of persistently low oil prices on higher-cost producers is becoming apparent. China's crude output fell 9.8 percent to 3.89 million bpd, to near its lowest in six years in the second-biggest year-on-year decline on record. Adding to the support to crude prices from lower output, refining rates in the world's largest commodities consumer rose last month. Technically market is under fresh buying as market has witnessed gain in open interest by 199.62% to settled at 17956 while prices up 94 rupee, now Crudeoil is getting support at 3407 and below same could see a test of 3343 level, And resistance is now likely to be seen at 3513, a move above could see prices testing 3555.

Trading Ideas:

Crudeoil trading range for the day is 3343-3555.

Crude oil gained after the U. S. EIA reported an unexpectedly large U. S. oil inventory drawdown last week.

Crude oil inventories fell by 5.2 million barrels last week, the EIA said.

Saudi Arabian Energy Minister Khalid al-Falih said that oil markets were at the end of a considerable downturn as fundamentals were improving.