Crudeoil on MCX settled up 0.85% at 3544 boosted by an unexpected draw in U. S. gasoline inventories although bloated crude supplies meant that fuel markets remain under pressure. The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017 in a bid to rein in a global fuel supply overhang. There was widespread scepticism that all producers would actually make the promised cuts, but compliance with the announced reductions is now estimated to be between 80 and 90 percent as especially OPEC's de-facto leader Saudi Arabia has enforced sharp production cuts. And this is likely to remain until the release of OPEC data next week. The U. S. Energy Information Administration (EIA) said on Wednesday gasoline inventories fell by 869,000 barrels last week to 256.2 million barrels, versus expectations for a 1.1 million-barrel gain. The fall in gasoline stocks suggested U. S. consumption was stronger than expected, and may be healthy enough to support prices at time when most fuel oil markets are very well stocked. China's January crude oil imports rose 27.5 percent from a year earlier to 34.03 million tonnes, or 8.01 million barrels per day, the third highest on record, official customs data showed. Both crude futures have traded within a $5 range since the beginning of the year, and traders said this was due to competing price drivers. Technically market is under short covering as market has witnessed drop in open interest by -19.91% to settled at 11840 while prices up 30 rupees, now Crudeoil is getting support at 3524 and below same could see a test of 3505 level, And resistance is now likely to be seen at 3558, a move above could see prices testing 3573.

Trading Ideas:

# Crudeoil trading range for the day is 3505-3573.

# Crude oil gained boosted by an unexpected draw in U. S. gasoline inventories although bloated crude supplies meant that fuel markets remain under pressure.

# EIA predicts U. S. production will likely grow by 100,000 barrels a day this year from 2016 and another 500,000 barrels a day by 2018.

# OPEC and 11 other heavyweight producers, such as Russia, late last year pledged to trim down production by 1.8 million barrels a day to support prices.