MUMBAI (Commodity Online): Crude Oil futures slipped to the negative territory on Wednesday as US dollar regained the strength in the international market. However, there are some range bound possibilities as key drivers for crude are moving in diverse directions.

MCX February 19 expiry oil futures contract is down Rs 16 at Rs 3421 per barrel. It may trade in the range of Rs 3450-3410 levels.

In the currency trades today, the euro was trading slightly lower against the US dollar. The euro was fetching $1.3740 against the dollar, down from $1.3779 late in New York Tuesday, and was at Y124.03 against the yen compared with Y123.52.

Crude oil yesterday bounced and closed up by almost 2% on base metal rise off setting the bearishness in the market but for today's session oil again look to have some pressure as industry report showed crude and Gasoline stockpiles in the U.S. increased last week, indicating demand from the largest energy consuming country may be weak.

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Oil declined in the morning session in electronic session after the American Petroleum Institute said crude inventories rose to the highest since October last year and Gasoline supplies reached the highest since March 1999.

An Energy Department report due Feb. 12 may also show stockpiles increased, now technically market is trading in the range as RSI for 18days is currently indicating 45.8, where as 50DMA is at 3589 and crude is trading below the same and getting support at 3377 and below could see a test of 3318 level, And resistance is now likely to be seen at 3472, a move above could see prices testing 3508.

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