Crudeoil settled up 0.34% at 6421 but gave up all its earlier gains and snapped a three-day gain to end a tad lower, despite the escalating violence in Iraq with reports suggesting the oil producing areas in the country to be largely insulated from the strife. Nonetheless, fears of supply disruption from the beleaguered country remained, even as news reports said the U.S. could collaborate with Iran to help the Iraqi government bring the country under its control. Investors also weighed some upbeat economic data from the U.S. with both industrial production and homebuilder confidence rising more than expected. In economic news from the U.S., a report from the Fed of New York showed that manufacturing activity in New York region to have risen unexpectedly in June with the Empire State general business conditions index inching up to 19.3, from 19.0 in May. Meanwhile, the two-day Federal Reserve meeting kick starts on Tuesday, with the central bank also scheduled to release its updated forecasts apart from the post-meeting policy statement. Investors will be looking ahead to the Commerce Department's housing starts report for May and the jobless claims report this week. Additionally, the Labor Department's consumer prices report for May, the Commerce Department's quarterly current account report, the Conference Board's leading economic indicators index for May and announcements concerning the Treasury auctions of 2-year, 5-year and 7-year notes are also due this week. Technically market is under short covering as market has witnessed drop in open interest by -7.9% to settled at 9079 while prices up 22 rupee, now Crudeoil is getting support at 6397 and below same could see a test of 6374 level, And resistance is now likely to be seen at 6458, a move above could see prices testing 6496.

Trading Ideas:

Crudeoil trading range for the day is 6374-6496.

Crudeoil settled up but gave up all its earlier gains to end a tad lower, despite the escalating violence in Iraq.

The rally lost some steam as the Iraqi government tightened security and deployed extra troops around oil infrastructure and oilfields

Investors also weighed some upbeat economic data from U.S. with both industrial production and homebuilder confidence rising more than expected