Crudeoil settled up 0.29% at 6199 gained after an official weekly report from the EIA showed crude stockpiles in the U.S. to have dropped more than expected last week. Meanwhile, reports from Ukraine say pro-Russian rebels have shot down two Ukrainian fighter jets, close to the location of the Malaysian passenger plane crash in eastern Ukraine late last week. Yesterday, a report from the U.S. EIA showed U.S. crude oil inventories to have dropped 4mbls in the week ended July 18, with markets anticipating a decline of 2.6mbls. The EIA report showed U.S. crude oil inventories at 371.1mbls, end last week. Gasoline stocks rose by 3.4mbls last week, with market anticipating an increase of 1.2mbls. Inventories of distillate, including heating fuel, rose 1.6mbls, while market expected an increase of 1.8mbls. Also a report from the API late Tuesday showed U.S. crude stockpiles to have declined a lower than expected 555kbls in the week ended July 18. In Libya, oil production had fallen to around 450kbpd as of Monday compared with 555kbpd on Thursday, a National Oil Company spokesman said. The drop comes as a  twin suicide bombing at a Libyan army base in Benghazi killed at least four solders. Still, more crude from the North African country could hit global markets with the Brega oil port expected to be operating within a "few days" after the government reached a deal with protesting security guards to end a blockade. Technically market is under fresh buying as market has witnessed gain in open interest by 10.2% to settled at 8117 while prices up 18 rupee, now Crudeoil is getting support at 6159 and below same could see a test of 6120 level, And resistance is now likely to be seen at 6226, a move above could see prices testing 6254.

Trading Ideas:

Crudeoil trading range for the day is 6120-6254.

Crude oil rose as oil stockpiles in US fell more than expected and geopolitical tensions in Eastern Europe and the Middle East persisted.

U.S. government data showed crude stocks fell more than expected by 4 million barrels last week.

In Libya, oil production had fallen to around 450kbpd against 555kbpd, a National Oil Company spokesman said.