Crudeoil settled up 0.8% at 5701 after data showed that U. S. retail sales rose more-than-expected in December, while core sales also topped forecasts. Libya's production has also risen to 600,000-650,000 barrels per day (bpd), with output at the El Sharara field back up to 300,000 bpd, its oil minister said. Wrecked by months of domestic protests, the OPEC producer's output is still below the 1.2 million bpd it was producing in July. Recent weak economic data from the United States has also dampened the outlook for fuel demand in the world's largest oil consumer. Oil markets seem to have weakened in the last few days because of lower U. S. economic indices like employment data and a rise in oil exports from Libya. A resolution to the issue could see western powers lifting sanctions on the OPEC producer's oil exports, increasing global supply. U. S. oil production from the fastest developing shale plays is expected to rise by 54,000 barrels per day (bpd) in January and another 62,000 bpd in February, according to forecasts from the Energy Information Administration issued. U. S. commercial crude oil inventories likely rose last week for the first time in seven weeks, a preliminary poll showed, with crude stocks forecast to rise an average of 500,000 barrels in the week ended Jan. 10. Technically market is under short covering as market has witnessed drop in open interest by -8.89% to settled at 12344 while prices up 45 rupee, now Crudeoil is getting support at 5658 and below same could see a test of 5614 level, And resistance is now likely to be seen at 5730, a move above could see prices testing 5758.

Trading Ideas:

Crudeoil trading range for the day is 5614-5758.

Crude rose after data showed that U. S. retail sales rose more-than-expected in December, while core sales also topped forecasts

Oil production from the OPEC edged up by 20,000 barrels per day to 29.72 million b/d in December from 29.70 million b/d in November last year.

Libya's El Sharara field is currently producing 300,000 barrels per day of oil compared to its peak output of about 340,000 bpd, Oil Minister Abdelbari Arusi