Crudeoil yesterday settled up 1.81% at 5795 edged higher on Wednesday as traders in the region digested a bearish batch of weekly inventories data out of the US. Earlier Wednesday, the US EIA said in its weekly report earlier that US crude oil inventories remained largely unchanged in the week ended June 21, confounding expectations for a decline of 1.7 million barrels. Total US crude oil inventories stood at 394.1 million barrels as of last week. Supplies climbed to 396.3 million earlier this month, the most since July 1981. The report also showed that total motor gasoline inventories increased by 3.7 million barrels, above expectations for an increase of 855,000 barrels. Oil was also dragged lower by a disappointing US data point. In US economic news published Wednesday, the US Commerce Department said US GDP grew 1.8% in the first quarter, well below the previous estimate of 2.4% growth. Growth in consumer spending was slashed to 2.6% from 3.4%. Only the home construction and government readings were not revised downward. Meanwhile the Brent benchmark is down 8.5 percent for the quarter, its third quarterly loss in a row, having dropped after Bernanke laid out a roadmap last week to slow bond buying and on concerns about an economic slowdown in China. Also supporting prices, European Central Bank President Mario Draghi said on Wednesday the ECB was nowhere near exiting its accommodative monetary policy, while seeing gradual recovery in the region by the end of the year. Technically market is getting support at 5694 and below same could see a test of 5593 level, And resistance is now likely to be seen at 5855, a move above could see prices testing 5915.

Trading Ideas:

Crudeoil trading range for the day is 5593-5915.

Crudeoil yesterday settled up as traders in the region digested a bearish batch of weekly inventories data out of the US.

U. S. Energy Information Administration said in its weekly report that U. S. crude oil inventories were unchanged.

Also, revised data showed that the U. S. economy grew less than expected in the first quarter.