Crudeoil settled up 1.88% at 5922 as upbeat IMF global growth forecasts support oil demand expectations also support seen after the news that Libya's oil minister had resigned also added to price gains. Also support seen as Rupee fell to a near two-week low, giving up early gains, on sustained dollar demand from a large state-run bank, which dealers speculated was likely to meet the government's defence purchase needs. Crude oil got additional support after the IEA said earlier that global demand is on the rise, while an IMF decision to hike its 2014 global growth forecasts also supported the commodity. In its monthly report released earlier in the session, the IEA said that global oil demand is forecast to rise by 1.3mblss a day this year to 92.5mblss, compared to a previous estimate of 91.2mblss a day. IEA cited "stronger economic momentum as the year progresses," as its reasoning behind the upward revision. The agency added that oil supplies from the OPEC rose by 310,000 barrels a day to 29.82mblss in December, due to higher output in Saudi Arabia. Crude oil prices will take a downward trend in 2014 driven by a remarkable increase in supplies not matched with the demand surge, a Kuwaiti oil expert projected. In an interview with Kuna, Mohammad Al Shatti even expected that the prices could go down to $90 and $80 per barrel in 2014, if Iraq, Iran and Libya's oil production swelled. Technically market is under short covering as market has witnessed drop in open interest by -0.91% to settled at 8071 while prices up 109 rupee, now Crudeoil is getting support at 5830 and below same could see a test of 5737 level, And resistance is now likely to be seen at 5982, a move above could see prices testing 6041.

Trading Ideas:

Crudeoil trading range for the day is 5737-6041.

Crude oil gained as the International Energy Agency raised its forecast for global oil demand this year, citing accelerating economic growth.

Global oil demand will rise more quickly this year as economic growth in industrialised countries accelerates, absorbing more supply even as U. S. shale oil production reaches record highs.

IEA said world oil consumption would increase by 1.3 million barrels per day (bpd) in 2014, 50,000 bpd higher than previously forecast.