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Crude oil on MCX settled down -1.47% at 2478 after industry data suggested a key pipeline shutdown had not reduced crude flows to the U.S. storage base by as much as expected. Higher Iraqi oil exports also underlined the global oversupply situation despite a positive U.S. government report on Wednesday on U.S. crude supply-demand that drove prices up by 5 percent. Market intelligence firm Genscape reported a build of 255,804 barrels at the Cushing, Oklahoma delivery hub for U.S. crude futures during the week to Tuesday.

The build came despite TransCanada Corp having shut since Saturday its 590,000 barrels per day (bpd) Keystone crude pipeline that moves crude to Cushing and Illinois. U.S. crude inventories fell 4.9 million barrels in the week to April 1, compared with analysts' expectations for an increase of 3.2 million barrels, according to data from the Energy Information Administration on Wednesday. Oil exports from Iraq's southern ports have risen to an average of 3.494 million barrels per day (bpd) in April, an official from the state-run South Oil Company said on Thursday.

This was above the 3.286 million bpd average for March. Major producers have no option but to reach an agreement to cap production when they meet April 17 in Doha and this may set a price floor, Nawal al-Fezaia, Kuwait’s governor to the Organization of Petroleum Exporting Countries, said Tuesday. Oil has swung between gains and losses since Friday amid speculation about whether an agreement can be reached at the meeting. Technically market is under long liquidation as market has witnessed drop in open interest by -6.4% to settled at 19026, now Crude oil is getting support at 2443 and below same could see a test of 2408 level, and resistance is now likely to be seen at 2530, a move above could see prices testing 2582.

Trading Ideas:
--Crude oil trading range for the day is 2408-2582.
--Crude oil fell as energy traders reacted to reports of a considerable inventory build at the Cushing Oil Hub and an unexpected increase among exports in Iraq.
--Oil exports from Iraq's southern ports have risen to an average of 3.494 million barrels per day (bpd) in April, an official from the state-run South Oil Company said.
--In Europe, North Sea oil field maintenance expected next month lent support to Brent futures, which are priced off North Sea supplies.