Crudeoil yesterday settled up 2.31% at 6557 soared after better-than-expected factory and jobs reports hit the wire in the US earlier, while improving Chinese output figures bolstered prices as well. Also prices are headed for their biggest weekly gain in a month, supported by upbeat global economic data and supply disruptions in Africa and Iraq. In the US earlier, the ISM said its widely-watched PMI rose to 55.4 in July from 50.9 in June, expanding at its fastest rate since April 2011 and well above market forecasts for a 52.0 reading. Separately, the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 26 fell by 19K to 326K. The numbers, the latest in a series of indicators that have beat expectations, painted a picture of a US recovery that is gaining steam and will demand more oil and fuels going forward. Improving manufacturing barometers outside of the US fueled the rally as well. Meanwhile in China, a government report revealed that the country's manufacturing PMI rose unexpectedly to 50.3 in July from 50.1 in June. Investors are likely to be on edge ahead of the US employment report due later in the day that should provide more clues on the strength of the world's top economy and oil consumer. Concerns over supplies from Libya, Iraq and Nigeria helped trim OPEC output to a four-month low in July. In Libya, protests at oilfields and terminals cut average supply to 1.15mbls per day in July, according to the survey, down 150K bpd from June. Iraq's production has also come under pressure as Sunni insurgents target its northern pipeline, while technical problems are curbing output in the south. Technically market is getting support at 6458 and below same could see a test of 6360 level, And resistance is now likely to be seen at 6610, a move above could see prices testing 6664.

Trading Ideas:

Crudeoil trading range for the day is 6360-6664.

Crude oil gained as upbeat economic data from China and Europe pointed to a stronger demand outlook and unrest in Libya and Iraq disrupted supplies.

OPEC crude output hit a four-month low in July as unrest and conflict in Libya and Iraq disrupted supplies

Lending further support, oil inventories at Cushing, Oklahoma fell for fifth straight week, data showed, although overall stocks increased.