Crudeoil on MCX settled up 0.53% at 3623 rose on Monday despite very thin trading as holiday trade in the U. S. reduce volume and reduced volatility settled at $53.69, as investor optimism over the effectiveness of producer cuts encouraged record bets on a sustained rally, although growing U. S. output and stubbornly high stockpiles kept price gains in check. Support seen as data showing hedge funds are betting big across oil markets following OPEC production cuts agreed last year. Prices got a slight lift from a weaker dollar as well. A strong greenback typically makes oil more expensive for holders of other currencies. The OPEC and other producers, including Russia, agreed last year to cut output by almost 1.8 million bpd during the first half of 2017. Estimates indicate compliance with the cuts is around 90 percent. Market reported last week that OPEC could extend the pact or apply deeper cuts from July if global crude inventories fail to drop enough. Investors have certainly taken OPEC members at their word on their commitment to cut production and now hold more crude futures and options than at any time on record. In the week ahead, market participants will eye fresh weekly information on U. S. stockpiles of crude and refined products on Wednesday and Thursday to gauge the strength of demand in the world’s largest oil consumer. The reports come out one day later than usual due to Monday's President's Day holiday. Meanwhile, traders will also continue to pay close attention to comments from global oil producers for further evidence that they are complying with their agreement to reduce output this year. Technically market is under fresh buying getting support at 3608 and below same could see a test of 3594 level, And resistance is now likely to be seen at 3639, a move above could see prices testing 3656.

Trading Ideas

# Crudeoil trading range for the day is 3594-3656.

# Crude oil gained as prices remained supported amid efforts by producers to cut output and bring the market into balance.

# U. S. energy companies added oil rigs for a fifth consecutive week, Baker Hughes said, extending a nine-month recovery.

# Overall, 2017 U. S. production will rise by an average 130,000 bpd from a year ago, the note said.