Crudeoil yesterday settled up by +1.02% at 5268 despite of concern a weaker outlook for global economic growth will crimp demand for the commodity. On Thursday, oil prices fell to a three-week low of $92.24 a barrel after data showed that manufacturing activity in China contracted for the first time in seven months in May. China’s HSBC Flash PMI, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April. Market sentiment was also dampened amid speculation over an earlier-than-expected end to the Fed’s asset purchase program. On Wednesday, Bernanke said a decision to scale back the US central bank’s $85 billion-dollar-a-month asset purchase program could be taken in the "next few meetings" depending on economic data. Meanwhile, Wednesday’s minutes from the US central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June. The US is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand. In the week ahead, oil traders will be focusing on a flurry of US economic data, including reports on the housing sector, consumer confidence and initial jobless claims. On Friday, the US Commerce Department said core durable goods orders rose by a seasonally adjusted 1.3% in April, beating expectations for a 0.5% increase. There will be no floor trading in New York on May 27 because of the Memorial Day holiday. Technically now Crudeoil is getting support at 5223 and below same could see a test of 5178 level, And resistance is now likely to be seen at 5293, a move above could see prices testing 5318.

Trading Ideas:

Crude trading range for the day is 5179-5319.

Crude gains as traders exited short positions but pressure seen due to ample supply and a sluggish economic recovery that could dent demand for fuel.

Investors are looking for a rebound in China's economic growth in the second half of the year that could lift the outlook for fuel demand.

Iraqi oil exports averaged 2.6 million barrels per day (bpd) in May, steady from the previous month