Crude oil settled up 0.17% at 5856 recovered after the API said its own data showed that crude stockpiles fell by 7.3mbls in the week ended Jan. 3. Crude oil has continued to decline since the opening of the New Year.

Crude oil topped $100 just before the end of the year. Crude oil has gained a few cents to trade at 93.64 after weak service PMI data in the US weighed on prices during Monday’s session.

The Non-Manufacturing Index, declined to 53 percent in December from 53.9 percent in November, the ISM said Monday. The index showed that new orders, a signal of future business, decreased by 0.7 percentage point to 49.4 percent in December.

A weaker service data signaled less demand from the world’s largest oil consumer. US demand is a key driver for oil prices as it is the world’s largest economy and the biggest oil consuming nation. Prices however are likely to be under downward pressure over the longer term owing to ample supplies and an expected stabilization in demand.

Earlier on Tuesday crude oil snapped a five-day losing streak, rising on better-than-expected trade data out of the U. S. while concerns that Libyan output is still far away from normal levels also boosted the commodity. Libyan oil operations faced glitches in the recent past due to protesters disrupting production at various oilfields, and expectations for the country to possibly double its output to around 600kbpd soon pressured prices lower in recent sessions.

Technically market is under short covering as market has witnessed drop in open interest by -3.76% to settled at 12767, now Crude oil is getting support at 5831 and below same could see a test of 5807 level, And resistance is now likely to be seen at 5879, a move above could see prices testing 5903.