Crudeoil settled down -1.94% at 6016 dropping to a three-week low on Thursday over disappointing U. S. unemployment figures and hopes over extra supply from Libya. Libya's National Oil Corp expects to start production from country's largest oil fields, El Sharara in next few days as protestors agreed to end a two-month-old stoppage of the facility.

While the U. S. Department of Labor said in a report earlier that the number of individuals filing for initial jobless benefits declined by 2,000 to a seasonally adjusted 339,000 last week. Market had expected U. S. jobless claims to fall by 7,000 to 334,000 from the previous week's revised total of 341,000. Crude oil prices also weakened on Thursday due to a broadly stronger U. S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

Crude oil traders now looked ahead to key U. S. weekly supply data, which was forecast to show a fifth consecutive weekly drop in crude stockpiles. After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U. S. crude inventories fell by 5.7 million barrels in the week ended Dec. 27. The more closely-watched numbers from the U. S. Energy Information Administration have been delayed until Friday due to the New Year's holiday.

NYMEX oil prices ended 2013 with a gain of approximately 6%, the biggest annual advance since 2010. Technically market is under fresh selling as market has witnessed gain in open interest by 23.03% to settled at 11330 while prices down -119 rupee, now Crudeoil is getting support at 5954 and below same could see a test of 5893 level, And resistance is now likely to be seen at 6123, a move above could see prices testing 6231.

Trading Ideas:

Crudeoil trading range for the day is 5893-6231.

Crude oil dropped after Libya prepared to restart a major oilfield and on slowing economic expansion in China.

In Libya, oil output is still less than 250,000 bpd, down from 1.4 million bpd in July, as ports in the eastern part of the country remain shut.

Today crude oil inventories: EXP: -2.9M PREV: -4.7M. Actual is at 9.30PM