Crude oil settled down -0.36% at 6106 as traders took profit at the end of the month, however downside seen limited underpinned by supply worries and strong gasoline demand in the United States. Oil supply from Libya, a source of high quality, light crude, remained near a tenth of capacity with protests and violence disrupting output. The U. S. Energy Information Administration reported that crude oil inventories rose by 1.657 million barrels last week after falling 7.226 million barrels the week before. U. S. crude was partly under pressure from news of an overall rise in U. S. crude stocks, though other inventory figures were supportive. Gasoline stocks fell 1.8 million barrels, data from the U. S. Energy Information Administration showed, compared with expectations of a 300,000-barrel gain, indicating a strong start to the U. S. summer driving season. U. S. consumer spending fell for the first time in a year in April but the decline, which followed two months of solid gains, did not change expectations for a sharp rebound in economic growth this quarter. Iran's crude oil exports increased in May after a decline in April, according to sources who track tanker movements, moving above the level allowed by November's interim deal on curbing Tehran's nuclear programme. Iran's exports have averaged 1.38 million bpd in May, one of the sources said. That represents an increase from 1.1 million bpd in April, as estimated by the Paris-based International Energy Agency. Technically market is under long liquidation as market has witnessed drop in open interest by -4.26% to settled at 8063 while prices down -22 rupee, now Crude oil is getting support at 6083 and below same could see a test of 6061 level, And resistance is now likely to be seen at 6121, a move above could see prices testing 6137.

Trading Ideas:

Crudeoil trading range for the day is 6061-6137.

Crude oil dropped as traders took profit at the end of the month, however downside seen limited underpinned by supply worries.

Oil supply from Libya, a source of high quality, remained near a tenth of capacity with protests and violence disrupting output.

Crude was partly under pressure from news of an overall rise in U. S. crude stocks, though other inventory figures were supportive.