Crudeoil settled up 0.64% at 5859 hit a two-week high on Friday, amid expectations the U.S. economic recovery will continue to deepen going into this year. Better-than-expected data on U.S. housing starts sent oil prices higher on Friday after investors viewed the numbers as another indication of a more robust U.S. economy, one that will demand more fuel and energy going forward. US housing starts fell to 999,000 units last month from an upwardly revised 1.11 million in November, better than expectations for a decline to 990,000 units. U.S. building permits dropped to 986,000 in December, but held close to November’s five year highs of 1.01 million units. Separate reports showed that U.S. industrial production rose 0.3% in December, increasing for the fifth consecutive month, while consumer sentiment declined in January. Nymex oil prices rallied sharply on Wednesday after government data showed that U.S. oil supplies fell significantly more-than-expected last week, easing concerns over a slowdown in demand from the world’s largest oil consumer. The U.S. EIA said in its weekly report that U.S. crude oil inventories fell by 7.7mbls in the week ended January 10, compared to expectations for a decline of 0.6mbls. Total U.S. crude oil inventories stood at 350.2mbls as of last week, the lowest since March 2012. In the week ahead, investors will be closely watching Chinese data on gross domestic product, industrial production and retail sales. The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand. Technically market is getting support at 5814 and below same could see a test of 5768 level, And resistance is now likely to be seen at 5897, a move above could see prices testing 5934.

Trading Ideas:

Crudeoil trading range for the day is 5768-5934.

Crude oil gained on expectations that the strong demand for U.S. crude oil seen for recent weeks would continue.

OPEC has lowered its oil output further and is pumping less than this year's global need for its crude

The restart of Libya's El Sharara two weeks ago and a jump in exports from Iraq's southern terminals in the first two weeks of 2014 also weighed