Crudeoil on MCX settled up 2.03% at 2971 after a short covering rally was triggered by comments from Saudi Arabia's oil minister in the previous session about possible action to help stabilize the market. Saudi Arabia's energy minister said oil producers would discuss potential action to stabilize oil prices during a meeting next month in Algeria. The news spurred short covering, traders and brokers said, even though the likelihood of any agreement remained slim. Data showed U.S. oil drillers added rigs for a seventh straight week, the longest recovery in the rig count in more than two years. They added 17 rigs, the biggest increase since December.

Trading Ideas:

Crudeoil trading range for the day is 2862-3038.

Crude oil prices rallied after a short covering rally was triggered by comments from Saudi Arabia's oil minister about possible action to help stabilize the market.

Russia open to talks about a joint OPEC/non-OPEC oil output freeze according to Energy Minister Novak, but a deal still seems very unlikely Saudi Arabia's energy minister said oil producers would discuss potential action to stabilize oil prices during a meeting next month in Algeria.