Crudeoil settled down -0.19% at 6209 after investors locked in gains from concerns geopolitical tensions in Ukraine and in Israel will disrupt supplies. Escalating tension in the Middle East ratcheted up the global risk premium as Israel intensified its ground offensive in Gaza. Investors worried that a general conflagration could draw in neighbouring countries and affect oil supplies. Alternatively, a cooling of tensions over the weekend could shift the focus back to oil market fundamentals. Russia is one of the world's top producers and exporters of oil and gas.

Any restriction on the supply of Russian fuel to the West was seen as likely to support oil prices. Asia’s oil demand this summer also continues to be weak with low margins in the physical market and a persistent supply overhang. Iraq expects oil exports to reach 2.6 million barrels per day (bpd) this month and has expanded the capacity of its export facilities in the south to 3 million barrels daily, Oil Minister Abdul Kareem Luaibi said. Another OPEC member country Libya will not be able to export oil through its two largest eastern ports before August, due to safety checks after a near year-long closure, a senior oil official said.

The Thomson Reuters/University of Michigan preliminary consumer sentiment index fell to a four-month low of 81.3 in July from 82.5 in June, confounding expectations for rise to 83.0. Technically market is under long liquidation as market has witnessed drop in open interest by -9.54% to settled at 5952 while prices down -12 rupee, now Crudeoil is getting support at 6182 and below same could see a test of 6156 level, And resistance is now likely to be seen at 6249, a move above could see prices testing 6290.

Trading Ideas:

Crudeoil trading range for the day is 6156-6290.

Crude oil dropped after investors locked in gains from concerns geopolitical tensions in Ukraine and in Israel will disrupt supplies.

Investors worried that a general conflagration could draw in neighbouring countries and affect oil supplies.

Libya will not be able to export oil through its two largest eastern ports before August, due to safety checks after a near year-long closure.