Crudeoil on MCX settled down -3.63% at 2681 dropped as Nymex Crude tumbled below $40 for the first time since April, on heightened worries of a crude glut despite peak summer fuel demand. Crude has fallen more than 20% from a peak reached in June, with Saudi cutting crude prices to Asia and further increases in US drilling rigs sparking Monday’s 3.7% tumble. 

US West Texas Intermediate (WTI) crude was at USD 40.16 a barrel at 0148 GMT, up 10 cents from its last close after dipping below USD 40 for the first time since April the previous session.

International Brent crude oil futures were trading at USD 42.34 per barrel, up 20 cents from their last close.
 

 Crudeoil trading range for the day is 2584-2858. Oil output from OPEC is likely in July to have reached its highest in recent history, at 33.41 mbpd in July from a revised 33.31 mbpd in June. 

Technically market is getting support at 2633 and below same could see a test of 2584 level, And resistance is now likely to be seen at 2770, a move above could see prices testing 2858.