* US crude stocks fall for 6th straight week
* 2nd major blizzard of winter hits US Northeast
* Coming Up: US weekly jobless claims at 1330 GMT
(Updates with prices)
By Jennifer Tan
SINGAPORE, Jan 13 (Reuters) - Oil extended gains on
Thursday to hold under $92 a barrel, buoyed by signs of higher
demand after U.S. crude stockpiles fell more than expected and
a cold snap swept through the U.S. Northeast, the region's
largest heating oil market.
Reflecting the overall bullish sentiment, European
benchmark ICE Brent crude held steady under $100 a barrel, but
was off 27-month peaks hit in the previous session.
The market will scour weekly U.S. employment data for more
clues to the health of the world's largest economy. The data
released so far has delivered mixed signals. While the
country's unemployment rate has fallen by a hefty amount in
December, far fewer workers were added than expected.
"We're seeing a very strong market in crude after four
consecutive sessions of gains. There are expectations of
continued growth in demand after the bigger-than-expected drop
in U.S. crude stocks," said Matthew Lewis, an analyst with CMC
Markets in Sydney.
"It's a "risk-on" environment right now, where speculators
are happy to see oil creeping higher. We expect the price to
hit $100 in the next few weeks, but there will be strong
headwinds at this level, with significant profit-taking
setting in."
U.S. crude for February delivery <CLc1> rose 3 cents to
$91.88 a barrel by 0840 GMT, after settling up 75 cents at a
27-month high of $91.86 a barrel on Wednesday.
London Brent <LCOc1> was up 11 cents to $98.23 a barrel,
after rising 51 cents to settle at $98.12 a barrel, having
touched $98.85 a barrel earlier, its highest level since Oct.
1, 2008.
Brent's premium to U.S. crude stood at $6.42 a barrel, its
highest in 23 months since striking $10.67 a barrel in
February 2009.
U.S. oil inventories fell for the sixth straight week,
slashing supplies by 2.15 million barrels in the week ending
Jan. 7, the Energy Information Administration said.
Gasoline and distillate stockpiles rose, while heating oil
inventories fell as cold weather boosted demand in the U.S.
Northeast and pushed heating oil futures to 27-month highs.
Further supporting prices was the second major blizzard of
the winter, which blanketed the U.S. Northeast and cancelled
thousands of flights on Wednesday. []
A steady to weaker U.S. dollar on Thursday also supported
dollar-priced commodities. The greenback had eased against the
euro after a healthy debt auction in Portugal, which somewhat
eased euro-zone fiscal worries.
The euro zone's financing woes have been a drag on
investors' risk appetite, though with signs that highly
indebted European countries are able to tap capital markets,
albeit at high borrowing costs, risk seeking may return.
Reflecting the firmer sentiment and a rise in risk
appetite, the MSCI index of Asia Pacific shares outside Japan
was up 0.8 percent , within striking distance
of a 2-1/2-year high that has been tested twice in the past
two months.
On the supply front, worries over supply bottlenecks
eased, after Alaska's key oil pipeline resumed shipments and
started pumping 400,000 barrels per day, almost two-thirds of
its normal levels, following a four-day shutdown due to a
small leak. []
Norway also restored production at two North Sea oilfields,
helping boost supplies to a tight market. []
In the United States, the Labor Department will unveil
first-time claims for jobless benefits for the week ended Jan.
8 at 1330 GMT. Economists forecast a total of 405,000 new
filings, compared with 409,000 in the prior week.
(Editing by Clarence Fernandez)
