Crudeoil settled down -1.12% at 6006 as demand growth concerns after some dismal economic data from the U.S. with initial claims for unemployment benefits rising and slower growth in manufacturing activity in the Chicago area. Investors also continued to mull over data that showed a glut in U.S. supplies, with the official weekly oil report from the EIA indicating U.S. crude stockpiles to have declined more than expected last week, with gasoline and distillates supplies rising. Market say refineries are planning to scale back production at the end of summer, denting demand for crude oil. Crude prices were impacted after some disappointing economic data from the U.S. with first-time claims for U.S. unemployment benefits rebounding in the week ended July 26, with initial jobless claims bouncing off the fourteen-year low seen in the previous week. Meanwhile, a report from MNI Indicators on Thursday showed Chicago-area business activity grew at a substantially slower rate than expected in July, with the business barometer falling to its lowest level in a year. On Tuesday, crude oil futures ended lower after the weekly oil report from the U.S. EIA, with lingering concerns over the ongoing unrest in Ukraine and the Middle East, and the fresh sanctions on Russia. U.S. oil stockpiles fell by 3.7mbls in the week ended July 25, while Gasoline stocks rose by 0.4mbls last week, while inventories of distillate, including heating fuel, rose 0.8 million market. Technically market is under long liquidation and getting support at 5972 and below same could see a test of 5939 level, And resistance is now likely to be seen at 6061, a move above could see prices testing 6117.

Trading Ideas:

Crudeoil trading range for the day is 5939-6117.

Crude dropped on demand growth concerns after some dismal economic data from the US.

CVR Refining said its 115,000-barrel-per-day refinery in Coffeyville, Kansas might be shut for as long as four weeks.

OPEC pumped more oil in July, further tempering concerns that unrest in North Africa and the Middle East could hurt global oil supplies.