Crude oil gained supported by positive economic data and strong equity markets, while a moderate outlook for demand and ample supplies limited the upside.  Oil markets found some support from tension in the Middle East, which raised worries over the security of supply from the biggest producing region.  The fundamental outlook for oil also looked less positive with a weaker demand growth for 2013 as well as higher supply, according to the West's energy watchdog, the International Energy Agency.  Traders awaited the minutes of a U.  S.  Federal Reserve meeting due to be released on Wednesday to assess the outlook for the oil markets, as any hints of continued monetary easing by the U.  S. central bank would be bullish.  Commercial domestic stockpiles of crude hit 395.5 million barrels in the week to May 3, and although they have since eased, inventories remain high. Stockpiles likely fell for a second consecutive week on higher refinery activity and lower imports, a preliminary poll showed.  Markets are also waiting to see what the U.  S.  Federal Reserve will do with its monetary policy. The International Energy Agency expects weaker demand growth for oil in 2013, along with higher supply.  Commercial domestic stockpiles of crude hit 395.5 million barrels in the week to May 3, according to the data from the U.  S.  Energy Information Administration, the highest level since the agency began keeping records in 1982.  Now technically market is trading in the range as RSI for 18days is currently indicating 60.75, where as 50DMA is at 5147 and crude is trading above the same and getting support at 5289 and below could see a test of 5227 level, And resistance is now likely to be seen at 5392, a move above could see prices testing 5433.

Trading Ideas:

Crude trading range for the day is 5227-5433.

Crude oil gained supported by positive economic data and strong equity markets, while a moderate outlook for demand and ample supplies weighed.

The International Energy Agency expects weaker demand growth for oil in 2013, along with higher supply.

IEA last week forecast 8% growth in world oil demand on aggregate between 2012 and 2017, while supplies outside OPEC are expected to rise 1%.