Crudeoil on MCX settled down -2.1% at 3399 on profit-taking after markets rallied the previous day due to a draw in U. S. stocks and an expectation of an OPEC-led cut in production. The reduction in stocks in the world's largest oil consumer has added to bullish sentiment that arose after the Organization of the Petroleum Exporting Countries (OPEC) proposed to cut or at least curb oil production. While many remain skeptical about OPEC's ability to strike and effectively implement a deal at a Nov. 30 meeting, the notion of coordination among the 14 member states has at least put a floor under Brent and WTI prices at around $50 a barrel. OPEC's November meeting may agree on a half a million to 1 million barrels per day oil production cut. The producer cartel hopes non-OPEC exporters, especially Russia, will cooperate. Saudi Arabia's Energy Minister Khalid al-Falih said a cut would help reduce a huge overhang of supplies and stimulate new investments in the sector. Oil losses looked likely to remain limited amid optimism over a planned output cut by major producers. The Organization of the Petroleum Exporting Countries announced late last month that it has a preliminary plan to limit production to a range of 32.5 million to 33.0 million barrels per day. OPEC is expected to complete details of the proposed production cut at its next official meeting on November 30. Technically market is under long liquidation as market has witnessed drop in open interest by -22.47% to settled at 13922 while prices down -73 rupee, now Crudeoil is getting support at 3369 and below same could see a test of
3338 level, And resistance is now likely to be seen at 3447, a move above could see prices testing 3494.

Trading Ideas:

Crudeoil trading range for the day is 3338-3494.

Crude oil dropped on profit-taking after markets rallied the previous day due to a draw in U. S. stocks and an expectation of an OPEC-led cut in production.

Saudi Arabia's Energy Minister Khalid al-Falih said a cut would help reduce a huge overhang of supplies and stimulate new investments in the sector.

The OPEC announced late last month that it has a preliminary plan to limit production to a range of 32.5 million to 33.0 million barrels per day.