Crude Oil settled up by 0.26% at 5844 after a gap opening while prices given up it's earlier gain's ahead of the weekly official oil report from the EIA, weighed down on reports that global demand for oil is likely to decline. Investors largely ignored some positive economic data, with homebuilder confidence in the U.S. unexpectedly improving for a third consecutive month in August, to its highest level in seven months. Last week's weak economic data from the eurozone, an unexpected increase in U.S. crude oil stockpiles and the resumption of supplies from Libya also contributed to oil's decline. Although an end to the tensions between Russia and the West are not in sight as yet, reports that Russian convoys will be allowed to carry humanitarian aid to eastern Ukraine have helped ease concerns a bit. Also Libya's exports are getting back online with the re-opening of its largest port, Es Sider, which was closed for nearly a year. Earlier last week, oil cargo was loaded from Libya's third largest port, Ras Lanuf, for the first time in almost a year. On Friday, crude oil futures ended sharply higher, bouncing back on reports of escalating tensions between Russia and Ukraine. Some short-covering after Thursday's sharp plunge too contributed to oil's uptrend. For the week, oil shed 0.3 percent. In economic news from the U.S., homebuilder confidence unexpectedly improved for the third consecutive month in August. The NAHB Housing Market Index climbed to a reading of 55 in August from 53 in July. Technically market is under short covering and getting support at 5812 and below same could see a test of 5781 level, And resistance is now likely to be seen at 5887, a move above could see prices testing 5931.

Trading Ideas:

Crudeoil trading range for the day is 5781-5931.

Crude oil pared its earlier gains as investor concerns over conflict in Ukraine and Iraq eased, and as higher Libyan oil output added to already ample supplies.

Libya's production, disrupted for months by strikes and protests, had risen to 535,000 barrels a day (bpd).

Adding to easing tensions and rising output in Libya, prices has been weighed by low demand from refineries in Europe and Asia.