Crude Oil rose yesterday and settled with a gain of +0.60% at 5181 after housing and labor-market data came in stronger than expected. In the US earlier, US Department of Labor reported that the number of individuals filing for weekly jobless benefits last week fell by 37,000 to a seasonally adjusted five-year low of 335,000, much more than market calls for a decline of 7,000 to 365,000. The news sent oil prices gaining on sentiments that a stronger US economy will demand more fuels and energy going forward. Meanwhile, the Commerce Department said US housing starts jumped by 12.1% in December to an annual unit rate of 954,000, the highest level since 2008, beating out expectations for a 4.6% increase to 890,000, which also pushed growth-sensitive oil prices higher. Markets largely ignored a separate report showing that the Philly Fed’s manufacturing index fell to -5.8 in January from 4.6 the previous month, missing expectations for a 5.8 reading. The commodity also saw continued support on supply data as well. Earlier this week, the US Energy Information Administration said in its weekly report that US crude oil inventories fell by 951,000 barrels in the week ended Jan. 11, confounding expectations for an increase of 2.27mbls. The government report also showed that total motor gasoline inventories increased by 1.9mbls, below expectations for a gain of 2.93mbls. Now technically market is getting support at 5133 and below could see a test of 5084 level, And resistance is now likely to be seen at 5209, a move above could see prices testing 5236.

Trading Ideas:

Crude trading range for the day is 5084-5236.

Crude oil rose after strong data housing and labor-market data came in stronger than expected.

OPEC will curb its increase in shipments this month as Saudi Arabia reduced production and mild temperatures check demand.

OPEC production dropped to the lowest level in 14 months in December because of a 4 percent supply cut by Saudi Arabia