Crudeoil on MCX settled down -0.6% at 3616 as prospects of rising U. S. production weighed on the market. Pressure seen on prices despite efforts to trim global output by almost 1.8 million barrels per day (bpd) by OPEC and non-OPEC countries. Data released showed U. S. drillers added 29 rigs, the most in almost four years by the end of the previous week, taking the total count up to 551, the most since November 2015, according to Baker Hughes. U. S. oil production has risen by more than 6 percent since mid-2016, though it remains
7 percent below the 2015 peak, and is back to levels of late 2014 when oil started a sharp drop from above $100 a barrel. OPEC members Nigeria and Libya, both suffering setbacks in production, were given exemptions from the OPEC leg of the cuts with Saudi Arabia bearing the lion's share for the cartel. "The Kingdom [of Saudi Arabia] has taken the initiative and other countries took part in very significant actions," Saudi Energy Minister Khalid al-Falih told reporters following the meeting. "Despite demand usually being lower in the first quarter in winter, the actions taken by the Kingdom and many other countries has impacted the market in a tangible way and we have seen the impact in spot prices." Technically market is under long liquidation as market has witnessed drop in open interest by 4.11% to settled at 8339 while prices down -22 rupee, now Crudeoil is getting support at 3582 and below same could see a test of 3548 level, And resistance is now likely to be seen at 3643, a move above could see prices testing 3670.

Trading Ideas:

# Crudeoil trading range for the day is 3548-3670.

# Crude oil prices ended with losses as prospects of rising U. S. production weighed on the market.

# OPEC and non-OPEC countries have made a strong start to lowering their oil output under the first such pact in more than a decade, energy ministers said.

# Baker Hughes said that the number of rigs drilling for oil jumped by 29 to 551, the largest weekly increase since a recovery in the rig count began in June.