Crude Oil under fresh selling; Support seen at 3491

Crude Oil market is under fresh selling as market has witnessed gain in open interest by 9% to settled at 17536.

Crude Oil is getting support at 3491 and below same could see a test of 3407 level, And resistance is now likely to be seen at 3646, a move above could see prices testing 3717.

Crude Oil on settled down 1.57% at 3576 as swelling inventories depressed sentiment despite widespread expectations that OPEC and Russia would agree some form of production cut.

Surging oil production in the United States, Russia and by members of the Middle East-dominated Organization of the Petroleum Exporting Countries has helped fill global inventories and create a glut in some markets.

To rein in the glut, OPEC and its main partner Russia are discussing supply cuts and are due to meet in Vienna on Dec. 6 and 7 to agree production strategy.

Oil inventories are rising fast in the United States, where commercial crude stocks rose by 3.6 million barrels in the week to Nov. 23 to 450.49 million barrels, according to the Energy Information Administration (EIA).

U.S. crude production is at a record high of 11.7 million barrels per day (bpd). Crude reserves increased 6.4 billion barrels, or 19.5 percent, to 39.2 billion barrels at year-end 2017, marginally higher than the previous record of 39 billion barrels set in 1970, the EIA said.

A report that Russia was now leaning towards a production cut and traders will watch for any news of an agreement between the two oil-producing giants.

OPEC and non-OPEC allies led by Russia will gather on Dec. 6 and 7 in Vienna to discuss output policy and consensus is looking for a production cut of 1.1 million barrels per day in an attempt to put a floor under the recent sharp drop in oil prices.

Trading Ideas:
–Crude Oil trading range for the day is 3407-3717.
–Crude Oil dropped as swelling inventories depressed sentiment despite widespread expectations that OPEC and Russia would agree some form of production cut.
–Surging oil production in the United States, Russia and by members of the Middle East-dominated OPEC has helped fill global inventories and create a glut in some markets.
–Oil inventories are rising fast in the United States, where commercial crude stocks rose by 3.6 million barrels in the week to Nov. 23 to 450.49 million barrels.

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