Crude Oil yesterday recovered and settled up by +0.77% at 5208 but since last 3 session market is trading in the range, pressure seen after a US government report showed oil supplies rose to the highest level since 1982 last week. Prices rose by as much as 1% earlier in the session to hit a daily high of $96.53 a barrel. Also the US EIA said in its weekly report that US crude oil inventories rose by 0.2mbls in the week ended May 3, below expectations for an increase of 1.8mbls. Total US crude oil inventories stood at 395.5mbls as of last week, the highest level since 1982. The report also showed that total motor gasoline inventories decreased by 0.9mbls, compared to expectations for a decline of 0.4mbls. The US is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand. Chinese imports and exports rose more than expected in April, official data on Wednesday showed, indicating that the outlook for economic growth remains good. China's exports rose 14.7% yoy last month, while imports grew 16.8%, bringing the country’s trade surplus to $18.6 billion for the month, above expectations for a surplus of $15.05 billion. Oil futures have been buffeted in recent weeks by persistent signs of weak demand globally and improving global supply, but worries about the escalating civil war in Syria have kept traders on guard for supply disruptions in the Middle East. On Tuesday, unconfirmed reports of explosions in Tehran triggered a 30-cent intraday jump in the price of crude. Technically market is getting support at 5168 and below same could see a test of 5129 level, And resistance is now likely to be seen at 5233, a move above could see prices testing 5259.

Trading Ideas:

Crude trading range for the day is 5129-5259.

Crude ended with gains after a report showed U.S. oil stockpiles rose less than expected, despite setting a fresh 32-year high.

Global oil markets will be sufficiently supplied with the commodity on weaker demand growth and rapid increase in production - EIA

U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 230,000 barrels