Crudeoil yesterday settled up 3.07% at 6111 after settling at a 14-month high, as the world's largest oil consumer posted a huge decline in crude stocks and the fall of Egypt's president raised uncertainty in the Middle East. Crude rallied as support seen from the Rupee weakness which approach a record low, falling for a third consecutive session, as fears of continued foreign selling kept the focus on how to finance the country's record current account deficit. Meanwhile support seen as President Mohamed Mursi was ousted by the army late yesterday amid a political impasse, fanning concern energy supplies in the Middle East could be disrupted as Egypt controls the Suez Canal and the Suez-Mediterranean Pipeline. Also EIA said Wednesday crude supplies fell significantly last week. US crude inventories shrank 10.3mbls to 383.8mbls for the week ending June 28, surpassing analysts' expectation of a drop of 3mbls. Gasoline supplies declined 1.7mbls to 223.7mbls. Market expected a gain of 1mbls. The EIA report also showed that US refineries operated at 92.2 percent of total capacity, up 2 percentage points from the prior week. On the economic front, US job market showed steady improvement. In the week ending June 29, the advance figure for seasonally adjusted initial jobless claims was 343,000, a decrease of 5,000 from the previous week's revised figure of 348,000, the US Labor Department said Wednesday. Investors are also keeping an eye on the June non-farm payroll report due Friday, as the Federal Reserve's quantitative easing policy is largely dependent on jobs market improvement. Technically market is getting support at 5977 and below same could see a test of 5844 level, And resistance is now likely to be seen at 6208, a move above could see prices testing 6306.

Trading Ideas:

Crudeoil trading range for the day is 5844-6306.

Crude oil remained higher after a report from the U. S. government showed that oil supplies fell significantly more-than-expected last week.

Oil prices also drew support following the release of upbeat U. S. employment data and amid growing concerns political unrest in Egypt.

U. S. Energy Information Administration said in its weekly report that U. S. crude oil inventories fell by 10.3 million barrels