Factory growth in China - the second largest oil consumer - slowed in late 2013, although the purchasing managers' indexes published by the government and HSBC remained above 50 for December, indicating business activity is still expanding.
The bank, which kept its "neutral" recommendation on commodities, lowered its S&P GSCI Enhanced Commodity Index return forecast by 2 percent, compared with its previous forecast of a 0.1 percent increase.
The outcome of the Federal Open Market Committee (FOMC) meeting on Wednesday and whether operation twist will be extended or not will provide stimulus for crude prices, Jonathan Barratt of BarrattsBulletin.com tells CNBC-TV18.
Vandana Hari, Asia news director at Platts spoke to CNBC-TV18 about her outlook on crude oil and where the prices are headed.