Crudeoil settled unchange at 5993 as support seen from the NYMEX Crude oil which held above $100 a barrel amid further heightened tensions over Ukraine, as Europe warned of further sanctions and Russia threatened to disrupt gas supplies. Pro-Russian separatists claimed victory in a weekend referendum on self-rule in the eastern Ukrainian city of Donetsk, which stirred concerns that the country is sliding closer to civil war. The vote has been condemned by Ukraine’s government and the West, which has threatened to slap Russia with fresh sanctions, underlining concerns over a disruption to supplies from the region. Russia produced 10.4mbls of oil per day in 2012 and exported 7.4 million, making it the world’s second largest oil exporter after Saudi Arabia. Last week Energy prices started to advance after API report showed that Cushing supplies dropped 1.46mbls in the week ended May 2. Since the beginning of the year, inventories at the largest oil-storage hub slid almost 40%, according to the EIA. Some support also came from persistent worries over tensions in Ukraine; however, this prop failed to help Brent oil to close in the positive area. Meanwhile, WTI futures received a boost from brighter demand prospects as the recent data pointed to an acceleration of economic growth in the U.S. Another factor fostering a climb in WTI prices was weekly EIA report. In the week ended May 2, the U.S. inventories dropped 1.8mbls compared to expectations of a 900,000-barrel climb. Meanwhile, crude oil supplies rose 1.7mbls in the week ended April 25, while market called for a 1.3mbl climb. Technically market is under fresh selling and getting support at 5964 and below same could see a test of 5934 level, And resistance is now likely to be seen at 6022, a move above could see prices testing 6050.

Trading Ideas:

Crudeoil trading range for the day is 5934-6050.

Crude recovered from the day's low amid prospects Russia will be subject to new sanctions as tensions over Ukraine intensify.

Pro-Russian separatists claimed victory in a weekend referendum on self-rule in the Ukrainian city, fuelling to civil war.

Libya could boost production by 500kbls after the country's western oilfields and pipelines reopen, as protestors lifted their blockade.