Crude oil traded int he range but support seen as market focused on potential Iranian supply disruptions, gains came after reports surfaced that Iran has rejected proposals by six world powers to curb its nuclear program. The Islamic Republic accused the West of creating a "difficult atmosphere" with its demands at talks in Baghdad earlier in the day. Despite the dead end, negotiations are expected to continue in Geneva in mid-June, according to the Iranian news agency Mehr. Meanwhile, in the euro zone, industry data showed that mfg activity in the euro zone contracted at the fastest pace since June 2009 in May. Its preliminary manufacturing PMI fell by 0.9 points to a seasonally adjusted 45.0 vs 45.9 in May. The data came after a report showing that Chinese mfg activity remained in contraction territory for the seventh consecutive month in May, fuelling concerns over a deeper than expected slowdown in economy. Oil traders often use manufacturing numbers as indicators for future fuel demand growth. A deeper slowdown in China would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe. Now technically market is trading in the range as RSI for 18days is currently indicating 32.56, where as 50DMA is at 5355 and crude is trading below the same and getting support at 5072 and below could see a test of 5053 level, And resistance is now likely to be seen at 5111, a move above could see prices testing 5131.

Trading Ideas:

Crude trading range for the day is 5053-5131.

Crude oil traded higher as market focused on potential Iranian supply disruptions

Iran has rejected proposals by six world powers to curb its nuclear program.

Oil traders are concerned about demand growth as deeper slowdown in China would impair a global expansion