Crudeoil yesterday settled down -0.19% at 6199 at a two-and-a-half week low, as markets were jittery ahead of the Fed's upcoming policy meeting amid ongoing uncertainty over the future of the Fed's stimulus program. The release of mixed US data on initial jobless claims and durable goods orders on Thursday fuelled fresh uncertainty over whether the Fed will start to scale back its bond buying program later this year. The Labor Department said the number of individuals filing for initial jobless benefits last week increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000. Separately, the Commerce Department said orders for long lasting manufactured goods rose by a seasonally adjusted 4.2% in June, compared to expectations for an increase of 1.3%. Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase. Core durable goods orders, which exclude volatile transportation items, were flat in June, compared to expectations for a 0.5% increase. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Markets were also jittery after data earlier in the week showed that the preliminary reading of China's HSBC manufacturing PMI fell to an 11-month low of 47.7 in July, from a final reading of 48.2 last month. In the week ahead, the US is to publish data on gross domestic product and manufacturing activity to further gauge the strength of the US economy. Technically market is getting support at 6190 and below same could see a test of 6182 level, And resistance is now likely to be seen at 6208, a move above could see prices testing 6218.

Trading Ideas:

Crudeoil trading range for the day is 6182-6218.

Crude dropped amid concerns over falling Chinese demand after world's second-largest oil consumer ordered factories to reduce output over worries of excess capacity.

China's manufacturing activity hit an 11-month low in July and its job market weakened raising concerns of slower demand growth

Supply disruptions in the North Sea, Middle East and Africa, however, offered some support to oil prices.