Crudeoil settled up 0.81% at 5745 gained in the line of expectation as supported by a slew of positive economic data from the U.S. and on the bullish supply data yesterday. Economic data out of the U.S. showed initial claims for unemployment benefits declined more than expected with existing home sales also rising beyond expectations. Nevertheless, some sluggish manufacturing activity data from China checked oil's uptick, with concerns over a global slowdown. Manufacturing activity in China dropped to a 3 month low in August with the preliminary HSBC China Manufacturing PMI dipping to 50.3. This compares with July's final reading of 51.7. A batch of upbeat economic data from the U.S. earlier today showed existing home sales unexpectedly rose to a ten-month high in July, and a Labor Department report indicated jobless claims to have dropped more than expected in the week ended August 16. Meanwhile, a Conference Board report showed a bigger than expected increase of its index of leading U.S. economic indicators in July, suggesting the economy is gaining traction. Investors also continued to watch the developments in Ukraine and the Middle East. Libya is reported to have started oil exports from its largest terminal, after almost a year. Reports say about 600kbls of oil has been shipped to Europe from the Es Sider port. In Iraq, the U.S. military has reportedly scaled up airstrikes, shrugging off threats from Islamic militants to kill another US reporter held by them. On Wednesday, the militants released a video showing the execution of American journalist James Foley, in retaliation against U.S. airstrikes in Iraq. Technically market is getting support at 5687 and below same could see a test of 5629 level, And resistance is now likely to be seen at 5778, a move above could see prices testing 5811.

Trading Ideas:

Crudeoil trading range for the day is 5629-5811.

Crude oil gains lifted by supportive economic data from US after a plentiful supply picture and Chinese economic data had earlier pressured prices.

Saudi Arabia produced 10 million barrels per day (bpd) of oil in July, up from 9.780 million bpd in June, an industry source said.

OPEC member's oil production has risen in the past few weeks to around 560,000 barrels a day as ports in the east have resumed work.