Crudeoil yesterday settled down at 6261 on Thursday after data U.S. data revealed slightly more individuals sought unemployment assistance for the first time last week, though better-than-expected durable goods data curbed losses. Pressure mounted as the Labor Department said the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000. The numbers sent prices falling amid fears the U.S. economy still faces potholes on its road to recovery. In a separate report, the Commerce Department said orders for durable goods rose by 4.2% in June, outpacing expectations for an increase of 1.3%. Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase. Core durable goods orders, which exclude volatile transportation items, were flat in June, missing expectations for a 0.5% increase. Meanwhile Egypt braced for bloodshed on Friday in rival mass rallies, summoned by the army that ousted the state's first freely elected president and by the Islamists who back him. Turmoil in the Middle East can lead to fears of supply disruptions and provide support to prices. Also Investors largely avoided the commodity due to uncertainty over the fate of Federal Reserve stimulus measures, such as monthly purchases of USD85 billion in bonds from banks designed to stimulate the economy. Side effects to such policies tend to weaken the greenback, which makes oil a nicely priced asset in dollar-denominated exchanges. Technically market is getting support at 6200 and below same could see a test of 6139 level, And resistance is now likely to be seen at 6296, a move above could see prices testing 6331.

Trading Ideas:

Crudeoil trading range for the day is 6139-6331.

Crude oil ended with losses after data shows U.S. crude output reached the highest rate in more than two decades.

Oil fell after figures showed China's manufacturing activity hit an 11-month low in July and its job market weakened, raising concerns of demand.

Crude production in US rose to 7.56 million barrels a day, the highest since 1990, according to the U.S. EIA.