UPDATE 1-Oil steadies above $91 ahead of U.S. inventory data

                                
 * 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 in the world's 
largest oil user.	
                                
 NYMEX crude for February delivery <CLc1> slipped seven 
cents to $91.42 a barrel by 0531 GMT, while ICE Brent crude 
<LCOc1> fell 14 cents to $94.24.	
                                
 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. [ID:nN27198844]	
                                
 Oil's rally looked all the more secure due to rhetoric 
from several OPEC ministers, who have signaled $100 was a fair 
price. [ID:nLDE6BO01P]	
                                
 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. [ID:nN28243401]	
                                
 "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. [ID:nN28251373]	
                                
 The dollar index, which tracks the greenback's performance 
against a basket of major currencies, was largely unchanged at 
80.301.	
                                
 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 $2.4090 a 
gallon.	
                                
 Technicals point to oil prices consolidating between 
$90.12 and $91.50, with a bias towards a drop to $90.12. 
[ID:nL3E6NT005]	
	
 (Reporting by Randy Fabi; Editing by Manash Goswami)