Crudeoil settled up 0.53% at 6253 rose in the line of expectation as sentiments that an intense winter storm trekking across the eastern seaboard will hike demand for heating oil. Sentiments weighed down by poor economic data including an increase in jobless claims and weak U.S. retail sales. WTI crude remained above $100 per barrel. Low prices also reflected traders expectations of declining crude demand as refineries in the West reduced capacity for maintenance. Oil prices may find some support after protestors in Libya shut gas and oil pipelines. Meanwhile Chinese exports climbed 10.6% from a year earlier, beating expectations for a 2% increase and following a 4.3% gain in December. Imports rose 10%, compared to forecasts for a 3% increase. According to the report, China imported a record-high 28.16 million metric tons of crude oil in January, equivalent to 6.66 million barrels a day. Also Soft U.S. data failed to cap gains due to the monetary implications of a U.S. recovery still battling headwinds. The Commerce Department reported earlier that U.S. retail sales fell 0.4% in January, confounding expectations for a 0.3% increase. December’s figure was revised down to a decline of 0.1% from a previously reported 0.2% increase. Core retail sales came in flat in January compared to expectations for a 0.1% rise. The disappointing data fueled expectations that U.S. economic recovery still faces potholes and that the Federal Reserve will take its time dismantling its USD65 billion bond-buying program. Technically market is getting support at 6212 and below same could see a test of 6170 level, And resistance is now likely to be seen at 6277, a move above could see prices testing 6300.

Trading Ideas:

Crudeoil trading range for the day is 6170-6300.

Crude oil gained but upside was limited as data showed that retail sales in the U.S. fell for the second consecutive month

IEA said inventories in the developed world fell by 137 million barrels at the end of last year for the steepest quarterly decline since 1999.

All three major forecasters have raised their expectations for oil demand growth this year, countering earlier expectations for a possible supply glut.