Crudeoil settled down -0.24% at 6729 as firm rupee weighed despite as data from the US, China and the euro zone kindled hopes for better demand. Activity in China's manufacturing sector hit a four-month high as new orders rebounded, raising hopes the world's No. 2 economy may be stabilizing after a two-year slowdown. Euro zone business activity has picked up this month at a faster pace than expected, led by Germany which enjoyed growing demand for its exports. U. S. manufacturing activity hit a five-month high in August as hiring picked up and new orders increased at their fastest pace since January, an industry report showed. -U. S. oil demand rose 1.7% year-on-year in July to 18.925 million barrels a day, the strongest demand in the month in three years, the American Petroleum Institute said Thursday. The July figure was a gain of 1.8% from a month earlier, when oil demand in the world's biggest oil-consumering nation fell to a 16-year low for the month of June. US crude oil inventories remained at 22.7 days of supply last week, 0.4 days of supply higher than the six-year average (from 2007 to 2012) for the same week. Cushing inventories also fell from 2.55 to 2.42 days of supply last week, the lowest level this year. Falling supplies at Cushing suggest that infrastructure bottlenecks in US are being resolved. US crude oil demand looks strong as US crude oil inventories have plunged despite oil production advancing to 22-year highs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.14% to settled at 38567 while prices down -16 rupee, now Crudeoil is getting support at 6688 and below same could see a test of 6648 level, And resistance is now likely to be seen at 6793, a move above could see prices testing 6858.

Trading Ideas:

Crudeoil trading range for the day is 6648-6858.

Crude oil ended with small losses as firm rupee weighed despite as data from the US, China and the euro zone kindled hopes for better demand

U. S. manufacturing activity hit a five-month high in August as hiring picked up and new orders increased at their fastest pace since January

Political crisis in Egypt has stoked supply worries as country is home to Suez Canal and Sumed pipeline, which together carry around 4.5 million bpd