Crudeoil settled down -0.62% at 5973 as expectations of rising oil inventories in the United States were balanced by heightened tension in Ukraine. Also a weak Chinese manufacturing report sent oil prices falling on Monday on fears the world's second-largest consumer of crude will continue to see a cooling economy. A final reading of China’s HSBC manufacturing purchasing managers’ index came in at 48.1 April, down from a preliminary estimate of 48.3 and missing forecasts for an uptick to 48.4. A reading below 50 indicates a contraction, which pushed oil prices lower on Monday. Investors were paying close attention to events unfolding in Ukraine, after conflict between the government and pro-Russian separatists grew more widespread over the weekend. Fears that shipments from Russia, the world's second-largest exporter, will suffer gave oil some cushion in afternoon trading as did residual applause from Friday's upbeat U.S. jobs report. The Labor Department reported that the U.S. economy added 288,000 jobs in April, well above expectations for jobs growth of 210,000, while the unemployment rate dropped to a five-and-a-half year low of 6.3%. Also supporting oil was an upbeat report on the U.S. service sector released earlier Monday. In a report, the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to a five-month high of 55.2 in April, from a reading of 53.1 in March, compared to expectations for a rise to 54.1. Technically market is under fresh selling as market has witnessed gain in open interest by 15.6% to settled at 7523 while prices down -37 rupee, now Crudeoil is getting support at 5941 and below same could see a test of 5908 level, And resistance is now likely to be seen at 6031, a move above could see prices testing 6088.

Trading Ideas:

Crudeoil trading range for the day is 5908-6088.

Crude oil slipped pressured by reports that China's manufacturing sector contracted and Libya's oil output was recovering.

Capping losses in U.S. crude oil was news that growth in the U.S. services sector accelerated in April, rising at the fastest pace in eight months

Also supporting prices is the continuing shutdown of the bulk of Libya's oil output because of strikes and protests.