Crude rose yesterday as frigid temperatures across much of the U. S. are expected to raise demand for heating oil. Colder weather in the U. S. Northeast is giving momentum to investors who believe oil prices should be closer to the top of the range of $70 to $80 a barrel that's roughly bound the market over the last couple months.

But the weather was good for only a small gain, particularly with fuel distributors sitting on massive stockpiles built up during the recession. Now support for the crude is seen at 3658 and below could see a test of 3631. Resistance is now likely to be seen at 3709, a move above could see prices testing 3733.

Trading Ideas:

Crude trading range is 3620-3740.

Crude rose as frigid temperatures are expected to raise demand for heating oil

Crude oil is now having support at 3658 and resistance at 3709 level

Today Crude oil inventories: Exp: -1.7M Prev: -4.9M

BUY CRUDE JAN ON DIP @ 3640-3650 SL 3618 TGT 3666-3680-3702-3722. MCX