Commodity Trading Tips for Crudeoil by Kedia Commodity

Crudeoil on MCX settled down -3.74% at 3425 after a report showed U.S. crude inventories rose for a ninth straight week. Oil prices added to losses sustained in the previous session, after the Energy Information Agency (EIA) reported a much larger increase than expected in U.S. crude inventories. The EIA said that crude oil inventories rose by 8.209 million compared to estimates of an increase of 1.967 million barrels. Gasoline inventories decreased by 6.555 million against expectations for a draw of 1.4 million barrels while distillate stockpiles fell by 2.676 million barrels, compared to expectations of a 0.9 million decline. Kuwait Oil Minister Essam Al-Marzouq said on Wednesday that OPEC's compliance with an oil output cut reached last year stood at 140 percent in February, while non-OPEC members compliance was 50-60 percent. The Organization of the Petroleum Exporting Countries (OPEC) agreed to cut its output by about 1.2 million bpd from Jan. 1 to prop up oil prices and reduce a supply glut. Marzouq attributed the high compliance rate by OPEC members to a deep production cut by Saudi Arabia. "Saudi Arabia has voluntarily cut by more than its share to increase confidence in the output reduction issue (agreement)," he told journalists in Kuwait. He described OPEC's compliance as "excellent" and that of the non-OPEC members as "acceptable", adding that there was satisfaction by OPEC members with the current prices, which he described as "stable". Technically market is under fresh selling as market has witnessed gain in open interest by 52.65% to settled at 20660 while prices down -133 rupees, now Crudeoil is getting support at 3378 and below same could see a test of 3330 level, And resistance is now likely to be seen at 3512, a move above could see prices testing 3598.

Trading Ideas:

Crudeoil trading range for the day is 3330-3598.

Crude oil fell more than 3% after a report showed U.S. crude inventories rose for a ninth straight week.

Crude inventories in the United States, surged last week by 8.2 million barrels, handsomely beating the forecast of a 2 million barrel build.

Saudi Energy Minister Khalid al-Falih gave mixed messages on future production cuts by the Organization of the Petroleum Exporting Countries.