Crude extended declines in the line of expectation and hit a near two-month low, weighed down by talk of OPEC raising output and weak economic data. More pressure came after U.S. data showed initial jobless claims rose last week, hit a low of $85.17 earlier, the lowest since $83.63 on Dec. 1. Supporting the idea of higher OPEC supply, seaborne oil exports by OPEC, excluding Angola and Ecuador, will rise by 330,000 barrels per day in the four weeks to Feb. 12. Now technically market is trading in the range as RSI for 18days is currently indicating 38.84, where as 50DMA is at 4095.98 and crude is trading below the same and getting support at 3932 and below could see a test of 3897 level, And resistance is now likely to be seen at 4011, a move above could see prices testing 4055.

Trading Ideas:

Crude trading range is 3897-4055.

Oil fell on talk of more OPEC output to cool prices and a rise in U.S. jobless claims

Crude oil looks to get resistance at 3992 and support is seen at 3936 level.

Saudi Arabia's oil minister Ali al-Naimi said he was concerned about speculation in the oil market

SELL CRUDE FEB @ 3950-3960 SL 3998 TGT 3925-3902-3880.MCX