Crudeoil on MCX settled down -0.45% at 3303 amid uncertainty ahead of a planned OPEC-led crude production cut and thin liquidity during the U.S. Thanksgiving holiday kept traders from making big new bets. Market activity was low due to the U.S. holiday, and there was a reluctance to take on big price directional bets due to uncertainty about a planned oil production cut, led by the Organization of the Petroleum Exporting Countries (OPEC). OPEC is due to meet on Nov. 30 to coordinate a cut, potentially together with non-OPEC member Russia, but there is also disagreement within the producer cartel as to which member states should cut and by how much. IEA Director Fatih Birol told that even if production is cut, prices could soon come back under downward pressure again as the OPEC-led cut would enable U.S. shale oil drillers to massively increase their own output. Beyond OPEC, traders said the strong U.S.-dollar, which is at levels last seen in 2003 against a basket of other leading currencies, was influencing oil prices. A strong dollar, in which oil is traded, makes fuel purchases more expensive for countries using other currencies at home, potentially crimping demand. There were also signs of ongoing oversupply, with China's gasoline exports soaring over 100 percent compared with this time last year, to 870,000 tonnes, as its refiners churn out more petrol than even China's huge consumer base can handle. Technically market is under long liquidation as market has witnessed drop in open interest by -3.36% to settled at 10228 while prices down -15 rupee, now Crudeoil is getting support at 3283 and below same could see a test of 3264 level, And resistance is now likely to be seen at 3321, a move above could see prices testing 3340.

Trading Ideas:

Crudeoil trading range for the day is 3264-3340.

Crude oil dropped amid uncertainty ahead of a planned OPEC-led crude production cut and thin liquidity during the U.S. Thanksgiving holiday.

IEA Director Fatih Birol told that even if production is cut, prices could soon come back under downward pressure again.

OPEC is due to meet on Nov. 30 to coordinate a cut, potentially together with non-OPEC member Russia.