* 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-$91.50
* Coming up: API U.S. inventory data, 2130 GMT
(Adds analysts, updates prices)
By Randy Fabi and Dmitry Zhdannikov
SINGAPORE, Dec 29 (Reuters) - Oil steadied near a two-year
high 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> edged 34 cents down
to $91.15 a barrel at 1045 GMT, while ICE Brent crude <LCOc1>
traded 28 cents down at $94.10.
U.S. oil prices climbed to a 26-month high of $91.88 on
Monday, supported by cold weather on both sides of the Atlantic,
a weak dollar and OPEC's statements that it saw no need for an
urgent meeting to boost output.
"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 last weekend signalled $100 was a
fair price. []
The rise in oil, however, took a breather on Wednesday on
mixed U.S. economic data with crude also being affected by
forecasts of warmer temperatures in the snow-choked U.S.
Northeast [] and a strengthening dollar.
"The stock market is strong and there are a lot of calls for
the S&P 500 <.SPX> to reach next year close to a new all time
high, but such great enthusiasm when housing data have for
months not shown any signs of improvement is worrying," said
Olivier Jakob from Petromatrix.
U.S. consumer confidence unexpectedly deteriorated in
December, while prices of single-family homes fell almost double
the expected pace in October. []
For a graphic on asset returns in 2010
http://graphics.thomsonreuters.com/F/12/GLB_MKTQ410.html
DROP IN U.S. INVENTORIES
JBC Energy analysts said in a note oil prices were supported
by potential drawdowns to be shown by U.S. inventory reports.
"Attention should be paid to gasoline, with U.S. retail
sales of the transportation fuel climbing by 4.6 percent last
week (week-on-week, MasterCard)," said JBC.
The icy weather has boosted distillate needs, which includes
heating oil and diesel fuel, and U.S. distillates 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.
The dollar index, which tracks the greenback's performance
against a basket of major currencies, was down 0.06 percent at
1043 GMT, having recovered from minus 0.26 percent earlier on
Wednesday.
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 Keiron Henderson)
