Crudeoil settled up 1.55% at 6290 tracking gain's from Nymex Crude which surged to settled at $106.53 on higher geopolitical risks as tensions rose in Iraq, OPEC’s second largest crude oil producer. US President, Barack Obama, has not ruled out military action to assist the Iraqi government. While the major oil-producing regions in Iraq are not immediately threatened, the potential reduction in Iraq’s crude oil output could cause crude oil markets to head towards a deficit, particularly given Iraq’s contribution to global crude oil supply growth in recent months. The violence in Iraq may put at risk projections by the OPEC for extra supply. OPEC said oil markets should be balanced during the second half of this year with extra production sufficient to meet growing demand. Geopolitical concerns eclipsed otherwise bearish U.S. data. The Commerce Department reported earlier that U.S. retail sales rose 0.3% vs 0.6% in May, reminding investors that the U.S. economy still faces potholes that my dampen demand for fuel and energy. However, retail sales for April were revised up to a 0.5% gain against 0.1%. Core retail sales, eased up 0.1% in May, disappointing forecasts for a 0.2% increase. Core sales in April were revised up to 0.4% from a previously reported flat reading. Separately, the Labor Department reported that the number of individuals filing for initial jobless benefits in the week ending June 7 increased by 4k to 317k, confounding expectations for a decline of 3k, though markets largely shrugged off the report. Meanwhile, investors monitored developments in Iraq,while technically market is under short covering and getting support at 6225 and below same could see a test of 6160 level, And resistance is now likely to be seen at 6332, a move above could see prices testing 6374.

Trading Ideas:

Crudeoil trading range for the day is 6160-6374.

Crude oil ended with gains amid mounting concerns over escalating violence in Iraq.

Exports from northern Iraq have been halted for months because of damage to the pipeline that runs to the Turkish port of Ceyhan.

The violence in Iraq may put at risk projections by the OPEC for extra supply.