Crudeoil settled down -0.52% at 5950 after the official crude supply data from the EIA showed crude stockpiles in the U. S. to have increased more than expected. Meanwhile, the first shipment of oil from Libya left the Ras Lanuf port for the first time in almost a year. Earlier in the session a report from the U. S. EIA showed U. S. crude oil inventories to have increased 1.4 mbls in the week ended August 8, while market anticipated a decline of 2.0 mbls. The EIA report showed U. S. crude oil inventories at 367mbls, end last week. Gasoline stocks decreased by 1.2 mbls against a drop of 1.5 mbls. Inventories of distillate dropped 2.4 mbls. Late Tuesday, a report from the API showed crude oil stockpiles to have risen by 2 mbls in the week ended August 8. Meanwhile, the U. S. EIA in its monthly short-term energy outlook lowered its global oil consumption forecast for 2014 and 2015. The agency also indicated a distinct slowing in oil production growth by countries outside the OPEC. Investors also continued to monitor developments in Ukraine amid reports a convoy of 280 Russian trucks have left for eastern Ukraine, carrying humanitarian aid. Ukraine has stated the convoy will not be allowed in to Ukraine unless Russia adhered to protocol and send the aid under the leadership of the Red Cross. In economic news from the U. S., a report from the Commerce Department showed retail sales were virtually unchanged in July, after edging up by 0.2 percent in June. Technically market is under fresh selling and getting support at 5920 and below same could see a test of 5890 level, And resistance is now likely to be seen at 5978, a move above could see prices testing 6006.

Trading Ideas:

Crudeoil trading range for the day is 5890-6006.

Crude oil dropped as strong supplies overshadowed fears of disruptions from violence in OPEC member Iraq.

Total output from the OPEC rose to a five-month high above 30 million barrels per day (bpd) in July, the IEA said.

The U. S. Energy Information Administration said in its weekly report that U. S. crude oil inventories rose by 1.4 million barrels