Crude oil extended losses and turned lower in choppy trading after EIA weekly inventory data showed crude oil and refined product stockpiles rose last week. The EIA reported earlier that US crude oil inventories rose by 1.31mbls last week, slightly below expectations for a gain of 1.45mbls but still a marked contrast from a contraction of 11.12mbls registered in the last week of December, which sent oil prices falling. Gasoline inventories rose by 7.41mbls, outpacing market calls for a gain of 2.3mbls. Output has been on the rise in both the US and Canada, creating a supply glut at Cushing, Oklahoma, the point of delivery for US WTI crude. Oil traders were now looking ahead to Thursday's trade numbers from China, while inflation data was due out on Friday. Overall market sentiment remained cautious amid uncertainty about continuing political wrangling in Washington over further US budget cuts and raising the US debt ceiling. Investors adopted a wait-and-see approach ahead of Thursday's ECB's policy setting meeting. The ECB was widely expected to hold off cutting rates, but some market participants expected the bank to flag the possibility of rate cuts later in the year. Market players were also looking ahead to Spanish and Italian bond auctions on Thursday that will test appetite for peripheral euro zone debt. Another closely watched event will be the Bank of England's monthly announcement on its key interest rate, also due Thursday. Now technically market is getting support at 5085 and below could see a test of 5063 level, And resistance is now likely to be seen at 5135, a move above could see prices testing 5163.

Trading Ideas:

Crude trading range for the day is 5063-5163.

Crude turned lower after EIA weekly inventory data showed crude oil and refined product stockpiles rose last week.

EIA's weekly report said U. S. crude production last week rose above 7 million bpd for the first time since 1993.

U. S. EIA said in its weekly report that U. S. crude oil inventories rose by 1.31 million barrels