Crude Oil recovered from lows to settle flat as fighting in Ukraine and deteriorating relations between Russia and the United States ignited new fears of supply disruptions in the market. Continued violence in Libya and Israel provided further support for oil prices. In Libya, oil production has risen to 500,000 barrels per day, but there was no progress on reopening its Brega oil port after an agreement to end a protest there. Oil prices were also supported by U.S. Labor Department unemployment data, which suggested the economic recovery remained on track with initial weekly jobless claims at their lowest since February 2006. Russian Foreign Ministry said the United States was trying to influence international opinion through unfounded insinuations over the crisis in Ukraine. Elsewhere, reports of rising gasoline stocks at the U.S. oil hub in Cushing, Oklahoma, as well as news that European refineries are cutting runs or even idling plants due to an influx of oil products from the U.S. sent investors selling oil futures on concerns global supply remains ample, especially considering that disruption fears in war-torn Iraq and elsewhere in the Middle East never panned out. The Census Bureau reported earlier that U.S. durable goods orders rose 0.7% in June, beating expectations for a 0.5% gain, after declining of 1% in May, whose figure was revised from a previously estimated 0.9% contraction. Upbeat U.S. data supported oil by painting a picture of a more robust U.S. economy, one that will demand more fuel and energy going forward. Technically now Crudeoil is getting support at 6099 and below same could see a test of 6048 level, And resistance is now likely to be seen at 6188, a move above could see prices testing 6226.

Trading Ideas:

Crudeoil trading range for the day is 6048-6226.

Crude oil recovered from lows as fighting in Ukraine and deteriorating relations between Russia and US ignited new fears of supply disruptions.

Continued violence in Libya and Israel provided further support for oil prices.

In Libya, oil production has risen to 500,000 barrels per day, but there is no progress on reopening its Brega oil port.