* 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
(Updates prices)
By Randy Fabi
SINGAPORE, Dec 29 (Reuters) - Oil steadied above $91 a
barrel on Wednesday ahead of U.S. inventory data expected to
show a drawdown in crude and distillate stocks due to severe
weather in the world's largest oil user.
NYMEX crude for February delivery <CLc1> nudged three
cents higher to $91.52 a barrel by 0731 GMT, while ICE Brent
crude <LCOc1> traded unchanged at $94.38.
U.S. oil prices climbed to a 26-month high of $91.88 on
Monday, driven by a broad spectrum of factors ranging from the
dollar and cold weather to OPEC and surging global fuel demand.
"Investors are especially keen to follow whatever factor
is most supportive of prices moving higher," said analysts at
Cameron Hanover in a research note.
Bullish money managers have stormed into the oil market,
setting a fresh record high for net long crude positions on
the New York Mercantile Exchange. []
Oil's rally looked all the more secure due to rhetoric
from several OPEC ministers, who have signaled $100 was a fair
price. []
Crude's rise, however, took a breather early Wednesday on
forecasts for warmer temperatures in the snow-slammed U.S.
Northeast, curbing demand in the world's top heating oil
market. []
"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.
DROP IN U.S. STOCKS
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.
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. []
The dollar index, which tracks the greenback's performance
against a basket of major currencies, slipped 0.26 percent to
80.157.
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 0.54 cents to $2.4099 a
gallon.
Technicals point to oil prices consolidating between
$90.12 and $91.50, with a bias towards a drop to $90.12,
according to a Reuters market analyst. []
(Editing by Himani Sarkar)
