Crudeoil settled up 0.29% at 6190 as lingering concerns over supply disruption persisted with investors focused on escalating tensions in eastern Ukraine following a Malaysian Airlines passenger jet crash and developments in Gaza. Investors continued with their focus on geopolitical conflicts in the absence of any major U. S. economic data release, though several key reports are due later in the week. Concerns over further sanctions against Russia generated some negative sentiment after a Malaysian Airlines was shot down near the Ukraine-Russia border last Thursday. News reports indicate international investigators in Ukraine but have not been able to get to the crash site due to continued fighting between Ukrainian forces and pro-Russian separatists. From the Middle East, news reports said Israeli continued its ground offensive with significant casualties on both sides. Since lastweek crude oil traded lower but shot up in the following sessions amid supply concerns and signs of stronger demand. Speculation that a previous decline was excessive also gave impetus for a climb. Among the key supportive factors from the supply side were fresh sanctions on Russia, an escalation of tensions in Ukraine as well as movement of Israeli troops to the Gaza Strip. From the demand side, the EIA report lent solid support last week. In the week ended July 11, U. S. crude oil inventories slumped 7.5mbls compared to a forecast of 2.1mbl drop and versus a decline of 2.4mbls in the preceding week. A rapid decrease in inventories was attributed to the fact U. S. refineries boosted oil processing to the biggest level in nine years last week. Technically market is under fresh buying and getting support at 6149 and below same could see a test of 6107 level, And resistance is now likely to be seen at 6219, a move above could see prices testing 6247.

Trading Ideas:

Crudeoil trading range for the day is 6107-6247.

Crude oil gained as worries over escalating geopolitical tension balanced by expectations of large draws in U. S. oil stockpiles.

Easing worries over Iraq oil supplies and weak physical demand from refiners struggling with low processing profits limited upside.

Libya's output reached around 555,000 barrels per day last week, despite a slight reduction in output at the El Feel oilfield.