Crudeoil settled down -0.5% at 5981 ahead of the official crude supply data due Wednesday, with investors continuing to keep a close watch on the developments in Ukraine and the Middle East. Meanwhile, the International Energy Agency lowered its preliminary oil demand outlook for this year and 2015, contributing to a slip in oil prices. Tensions in Ukraine continued to persist, with reports that a convoy of 280 Russian trucks carrying humanitarian aid is headed for Ukraine. However, Ukraine has indicated it would not allow entry to the trucks unless Russia adheres to protocol and send the aid under the leadership of the Red Cross. Investors also await the weekly crude inventory data from the U. S. Energy Information Administration, due today. Yesterday Crude inventories rose by 229kbls in the week to Aug. 8 to 364.2mbls, compared with expectations for a decrease of 2mbls, data from industry group the American Petroleum Institute said. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 469,000 barrels. Also a fresh three-day truce in Gaza that came into effect Monday morning too helped ease geopolitical worries. Meanwhile a slew of Chinese data including industrial output due later in the day should give further clues on the state of the world's No. 2 economy. While recent data have pointed to strong manufacturing activity and exports, a weaker services sector and imports suggest more stimulus measures may be needed to ensure a sustained recovery. Technically market is under fresh selling as market has witnessed gain in open interest by 20.07% to settled at 12104 while prices down -30 rupee, now Crudeoil is getting support at 5949 and below same could see a test of 5917 level, And resistance is now likely to be seen at 6009, a move above could see prices testing 6037.

Trading Ideas:

Crudeoil trading range for the day is 5917-6037.

Crude oil dropped as steady supplies dispelled concerns over potential disruptions in producers including Iraq and Libya.

Pressure also seen after the International Energy Agency cut its forecast for global oil demand as it spoke of a supply "glut" in the Atlantic.

OPEC output rose by 300,000 bpd to a five-month high of 30.44 million bpd in July, it said, citing gains in Saudi Arabia and Libya.