Crudeoil settled down -0.88% at 5981 on profit booking and Rupee firmness while outlook remain firm as upbeat U.S. economic data boosted optimism over the health of the world’s largest oil-consuming nation. Crude Oil ended the week at 97.82 up  close to a $5 increase over the week after global demand increased on positive economic data and the EIA reported lower oil inventories. News that the Keystone pipeline would begin moving oil to producers the first of January helped prices as the glut of oil in Oklahoma has been growing The pipeline section has the capacity to carry 700kbls a day of crude to Port Arthur, Texas. It is one of several links that can potentially drain a glut of crude at Cushing, Oklahoma, the nation’s biggest oil-storage hub and delivery point for WTI futures. The decision by the OPEC to roll over its output limit is “no surprise”. The big question is what OPEC will do if output from Libya and Iran returns to the market next year; this topic was not on the agenda today, but will probably be discussed at the next meeting in six months. Meanwhile, the spread between the Brent and the crude contracts stood at USD13.96 a barrel by close of trade on Friday. The gap between the two contracts narrowed last week amid prospects for an easing of a supply bottleneck to refiners in Texas from the U.S. storage hub of Cushing, Oklahoma. In the week ahead, investors will be focusing on retail sales data out of the U.S. to further gauge the strength of the economy and the need for stimulus. Now Crudeoil is getting support at 5946 and below same could see a test of 5911 level, And resistance is now likely to be seen at 6042, a move above could see prices testing 6103.

Trading Ideas:

Crudeoil trading range for the day is 5911-6103.

Crudeoil dropped on profit booking as rupee firmness also weighed after data revealed the U.S. economy picked up more jobs than expected in November

Monetary implications of a more robust U.S. economy capped oil's gains, however.

The data sent oil rising on sentiments that the U.S. economy is gaining steam and will demand more fuel and energy going forward.