NYMEX-Crude edges below $79 after 1.3 pct gain

                                
 TOKYO, Jan 20 (Reuters) - U.S. crude futures edged down on
Wednesday after closing up for the first time in six days a day
earlier, as expectations of higher U.S. crude inventories and
milder U.S. weather weighed on prices.
                                
 FUNDAMENTALS
                                
 * NYMEX crude for February delivery <CLc1> was down 22 cents
at $78.80 a barrel by 0008 GMT, after settling up $1.02 from
Friday's settlement on the back of strong gains on Wall Street.
The market was closed on Monday for the Martin Luther King Day
holiday.
                                
 The February contract, which expires at the end of trading on
Wednesday, stood some $5 below a 15-month high of $83.95 a barrel
hit on Jan. 11.
                                
 * Oil inventories remain high enough to cope with any rise in
winter fuel use, OPEC said in a monthly report, which trimmed
estimated 2010 demand for OPEC oil. OPEC left its forecast for
2010 global oil demand growth unchanged. [ID:nWLB5404]
                                
 * U.S. crude inventories probably rose 2.5 million barrels
last week as refinery utilisation fell and imports increased, a
preliminary Reuters poll of industry analysts showed on Tuesday,
ahead of this week's inventory reports.
                                
 Distillate and gasoline stocks also likely rose. [EIA/S]
                                
 * U.S. heating fuel demand is expected to be well below
normal this week, according to the National Weather Service.
[ID:nN18183810]
                                
 Temperatures in the U.S. Northeast, the nation's biggest
heating oil consuming region, were expected to average above
normal through Saturday and near to above normal in the
six-to-10-day outlook of forecaster DTN. [ID:nDTN187]
                                
 MARKETS NEWS
                                
 * U.S. stocks rose broadly on Tuesday, lifting the Dow and
the S&P 500 to fresh 15-month closing highs as investors bet a
potential Republican victory in Massachusetts' Senate race could
stall President Barack Obama's healthcare reform agenda.
                                
 * A stronger dollar may also add some pressure to oil prices.
The euro declined on Tuesday, hitting its lowest level against
the greenback this year as a bigger-than-expected decline in
German investor sentiment added to woes inflicted by flagging
market confidence in Greek public finances. [USD/]
                                
 DATA/EVENTS
                                
 * The following data is expected on Wednesday:
                                
 - 0700 GMT--Germany Producer Prices/Dec
                                
 - 0930 GMT--U.K. Claimant Count Unemployment/Dec
                                
 - 1200 GMT--U.S. Mortgage Index/Weekly
                                
 - 1245 GMT--U.S. ICSC/GS Chain Store Sales/Weekly
                                
 - 1330 GMT--U.S. Producer Prices/Dec.
                                
 - 1330 GMT--U.S. Housing Starts/Dec.
                                
 - 1355 GMT--U.S. Redbook Retail Sales/Weekly
                                
 - 2130 GMT--American Petroleum Institute Oil Report/wkly
                                
 - NYMEX February 2010 Crude Oil Contract Expiry
                                
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 PRICES
 Oil prices as of 0008 GMT          
 Contract Mnth    Price  Change  Day ago     pct     MA-20*
 NYMEX Contracts
 US Crude FEB0   $78.80   -0.22   +$1.02  +1.31%     $79.12
 Heat Oil FEB0   204.45   -0.09    -0.06  -0.03%     209.27
 RBOB     FEB0   206.34   +0.43    +1.37  +0.67%     204.33
 Natgas   FEB0   $5.608  +0.051  -$0.134  -2.35%     $5.721
 ICE Contracts
 Brent    MAR0       --   +0.00   +$0.53  +0.69%     $77.95
 Gasoil   FEB0       --   +0.00   -$8.00  -1.28%    $633.09
 Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
 * = 20-day moving average for continuation month.
 (Reporting by Osamu Tsukimori)