Crudeoil yesterday settled up 0.86% at 5845 rose to a one-week high, after official data showed that US jobless claims declined last week while consumer spending increased last month. The data came after the Department of Labor said the number of people who filed for unemployment assistance in the US last week fell by 9,000 to a seasonally adjusted 346,000, compared to expectations for a drop of 10,000 to 345,000. A separate report showed that US personal spending was up 0.3% in May, in line with expectations. The data also showed personal income increased 0.5%, above expectations for a 0.2% increase. Investors had scaled back expectations that the Fed will start tapering bond purchases this year following a downward revision to US first quarter growth on Wednesday. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Meanwhile, oil prices drew further support after official data showed that profits at China's industrial companies jumped 15.5% in May from a year earlier, higher than April's 9.3% gain. Market sentiment received a further boost amid improvement in China's strained money markets. China is the world's second largest oil consumer after the US and has been the engine of strengthening demand. China's central bank is squeezing funds out of the money market, forcing banks to borrow money at historic interest rate levels, but the manoeuvre appears to have been calculated to have limited impact on the real economy. Technically market is getting support at 5783 and below same could see a test of 5721 level, And resistance is now likely to be seen at 5887, a move above could see prices testing 5929.

Trading Ideas:

Crudeoil trading range for the day is 5721-5929.

Crude gains as investor conviction strengthened that monetary stimulus measures from major central banks would stay in place for time being

Market sentiment received a further boost amid improvement in China's strained money markets.

Also supportive of oil prices was violence in the Middle East, with Libya the latest focus of attention.