* Surprise build in US crude stocks dents sentiment
* Forecasts of sustained cold weather to underpin prices
* US jobs data due later and on Friday to offer trading
cues
By Jennifer Tan
SINGAPORE, Jan 7 (Reuters) - Oil eased below $83 a barrel
on Thursday after settling near a 15-month high a day earlier,
as data showing a surprise build in U.S. crude stocks
outweighed expectations for robust heating fuel demand amid a
cold spell.
Crude posted its 10th straight day of gains on Wednesday,
as the dollar weakened and buoyed by forecasts of a bigger
inventory drawdown next week due to freezing temperatures
across much of the United States.
But any demand recovery in the world's top energy user
appears patchy so far. U.S. Energy Information Administration
(EIA) data released on Wednesday showed an unexpected
1.3-million-barrel increase in crude oil stockpiles last week,
while stockpiles of distillates, including heating oil, fell by
a smaller-than-projected 300,000 barrels. []
U.S. crude for February delivery <CLc1> was down 41 cents
to $82.77 a barrel by 0230 GMT, after settling up $1.41 a day
earlier at $83.18, its highest close since Oct. 9, 2008. London
Brent crude <LCOc1> fell 38 cents to $81.51.
"On the charts, oil looks quite bullish -- the next target
appears to be $89-$90 -- and it has got a lot to do with the
cold weather, which is set to continue for a while," said
Michelle Kwek, analyst at Informa Global Markets in Singapore.
Reflecting the boost from icy temperatures, the NYMEX
February heating oil <HOG0> contract remained at 15-month
highs. It settled up 0.41 percent at $2.2032 a gallon on
Wednesday, the highest close since finishing at $2.2099 on Oct.
20, 2008.
Arctic winds have pushed down into the Northern Hemisphere,
freezing Europe and parts of Asia, and boosting demand for
heating in the United States by some 21 percent above normal.
[]
Energy demand has also surged, especially in Britain and
France, while heavy snow and record low temperatures in China
prompted cities across eastern and central parts of the country
to begin rationing power. [] []
"But this price rally is driven more by sentiment and the
weak dollar, rather than fundamentals, as inventories are still
pretty high. This is largely due to the push by funds into
higher yielding commodity assets at the start of the year,"
Kwek added.
The greenback was on the defensive on Thursday after
minutes from the Federal Reserve's latest policy meeting
suggested the possibility of more stimulus measures for the
U.S. economy. []
Weekly U.S. jobless claims, due later at 1330 GMT, as well
as December non-farm payrolls data, due on Friday, will also
shape the outlook for the recovery of the world's largest
economy, interest rates, and the dollar's direction.
Economists forecast a total of 447,000 new filings for
first-time claims for jobless benefits in the week ended Jan.
2, compared with 432,000 in the prior week.
Price support also came from the continuing talks between
Belarus and Russia on Wednesday over the supply of Russian oil
for 2010.
Belarus earlier insisted Russia should continue billions of
dollars in oil subsidies, potentially complicating talks aimed
at resolving a dispute over a pipeline that brings 10 percent
of Europe's crude to market. []
(Editing by Clarence Fernandez)
