Crudeoil on MCX settled down -0.13% at 3164 prices were a bit lower as recovered from steep early losses after government data showed gasoline stockpiles continued to fall last week. Yesterday the EIA said that crude oil inventories rose by 5 million barrels to 533.1mbls compared to estimates of an increase of only 2.8mbls. Gasoline inventories dipped by 2.811 million against expectations for a draw of 2.008mbls while distillate stockpiles fell by 1.910 million barrels, compared to expectations of a 1.386 million decline. While Crude have slid for a third straight day, as fears grew that a ramp up in U. S. crude and shale oil production may dampened OPEC’s efforts to rebalance supply and demand in the industry. In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8mbpd in an effort to combat the oversupply issue that has pressured prices over the last two years. OPEC, which sources say is leaning toward extending cuts, has broadly delivered on pledged reductions, but non-OPEC states have yet to cut fully in line with commitments. Meanwhile US shale oil producers have been adding rigs, boosting the country's weekly oil production to about 9.1 million bpd for the week ended March 10 from an average 8.9 million bpd for 2016, according to U. S. data. Now market participants turn attention to Baker Hughes rig count, which is due to be released on Friday. Technically market is under fresh selling as market has witnessed gain in open interest by 2.51% to settled at 21356 while prices down -4 rupees, now Crudeoil is getting support at 3120 and below same could see a test of 3077 level, And resistance is now likely to be seen at 3190, a move above could see prices testing 3217.

Trading Ideas:

# Crudeoil trading range for the day is 3077-3217.

# Crude oil dropped after data showed that U. S. crude supplies rose more than expected last week, underlining concerns over a global glut.

# EIA said US inventories climbed almost 5mbls to 533.1 million last week, far outpacing forecasts of a 2.8mbl build

# US shale oil producers have been adding rigs, boosting production to about 9.1mbpd for the week ended March 10.