Crude ended with gains as anxiety over Iran and potential supply disruptions supported prices. The U.S. government reported employment growth accelerated in December, with nonfarm payrolls up more than expected and the jobless rate dropping to a near three-year low of 8.5 percent, more evidence of an acceleration in economic activity in the world's top oil consumer. Iran announced plans for new military exercises in the Strait of Hormuz, the latest in weeks of bellicose gestures towards the West as new sanctions threaten Tehran's oil exports. Western powers have readied a contingency plan to tap a record volume from emergency reserves to replace nearly all the Gulf oil that would be lost if Iran blocks the Strait of Hormuz, according to industry sources and diplomats. Conflict in fellow OPEC-member Iraq added to geopolitical uncertainty. Roadside bombs in Baghdad killed two pilgrims and wounded 17 others headed for a Shi'ite religious rite on Friday, security sources said, as fears of sectarian violence continue to be stoked. Now technically market is trading in the range as RSI for 18days is currently indicating 57.78, where as 50DMA is at 5181.72 and crude is trading above the same and getting support at 5356 and below could see a test of 5347 level, And resistance is now likely to be seen at 5377, a move above could see prices testing 5389.

Trading Ideas:

Crude trading range is 5347-5389.

Crude ended with gains as anxiety over Iran and potential supply disruptions supported prices

Conflict in fellow OPEC-member Iraq added to geopolitical uncertainty

Traders were influenced by European debt fears and encouraging reports about the U.S. jobs market.