Oil steadies above $91 ahead of U.S. inventory data

                                
 * Crude stocks expected to have fallen 2.9 million barrels
                                
 * Forecasts for warmer US weather pressures oil prices
                                
 * Technicals point to consolidation between $90.12 and 
$91.50
                                
 * Coming up: API U.S. inventory data, 2130 GMT

                                
 By Randy Fabi	
                                
 SINGAPORE, Dec 29 (Reuters) - Oil steadied above $91 a 
barrel on Wednesday, as forecasts for warmer weather in the 
U.S. Northeast offset expectations for a further drawdown in 
crude stocks in the world's largest oil user.	
                                
 NYMEX crude for February delivery <CLc1> slipped 12 cents 
to $91.37 a barrel by 0305 GMT, while ICE Brent crude <LCOc1> 
fell 14 cents to $94.24.	
                                
 U.S. oil prices surged to a 26-month high of $91.88 on 
Monday, driven by unusually cold weather, rising appetite for 
risk assets and signals from OPEC it would not arrest the rally.	
                                
 "Oil is tracking the cold weather in the Northeast of the 
United States and also the dollar against the euro," said 
Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.	
                                
 Temperatures in the U.S. Northeast were expected to warm 
by the end of the week, curbing demand in the world's top 
heating oil market and providing relief to New York residents 
slammed by the sixth biggest snowstorm on record. 
[ID:nN28243401]	
                                
 The icy weather has boosted distillate needs, which 
includes heating oil and diesel fuel, and U.S. stocks were 
expected to have fallen 500,000 barrels last week, a Reuters 
poll showed. 
                                
 Crude inventories in the world's biggest economy were 
pegged to have fallen 2.9 million barrels, while gasoline 
stocks were seen up 1.5 million barrels.	
                                
 The American Petroleum Institute is expected to report its 
weekly inventory data later on Wednesday, delayed by a day due 
to the Christmas holiday. The U.S. Energy Information 
Administration (EIA) will issue its weekly report on Thursday.	
                                
 	
                                
 BULLISH SENTIMENT	
                                
 Oil prices remained strong despite poor U.S. economic data 
that dampened growing optimism for a recovery.	
                                
 U.S. consumer confidence unexpectedly deteriorated in 
December, while prices of single-family homes fell almost 
double the expected pace in October. [ID:nN28251373]	
                                
 The dollar index, which tracks the greenback's performance 
against a basket of major currencies, was largely unchanged at 
80.288.	
                                
 "This is an additional illustration that oil prices want 
to advance," said Cameron Hanover in a research note. 
"Investors are especially keen to follow whatever factor is 
most supportive of prices moving higher."	
                                
 Evidence of this growing bullish sentiment was provided by 
a record high of net long crude oil positions on the New York 
Mercantile Exchange in the week to Dec. 21. [ID:nN27198844]	
                                
 Technicals point to oil prices consolidating between 
$90.12 and $91.50, with a bias towards a drop to $90.12. 
[ID:nL3E6NT005]	
                                
 Oil also found support from heavy U.S. holiday travel, 
which boosted retail gasoline demand by 4.6 percent last week. 
U.S. gasoline futures <RBc1> rose 0.57 cents to $2.4101 a 
gallon.	
	
 (Reporting by Randy Fabi)