* Analysts expect drawdown in U.S. crude, distillate stocks
* Warmer weather to return to snow-slammed US Northeast
* Dollar falls to seven-week low against yen
* Coming up: U.S. EIA inventory data, 1600 GMT
(Updates prices)
By Randy Fabi
SINGAPORE, Dec 30 (Reuters) - Oil held above $91 a barrel
on Thursday, ahead of U.S. weekly inventory data expected to
show a drawdown in crude stocks for the fourth consecutive
week due to an abnormally icy winter.
U.S. crude for February delivery <CLc1> edged up 18 cents
to $91.30 a barrel by 0420 GMT. Prices have traded in a tight
range near $91 since hitting a 26-month high of $91.88 on
Monday.
ICE Brent crude <LCOc1> rose 16 cents to $94.30.
"The oil market continues to alternate small gains with
small declines, as prices idle quietly on light
between-holiday volume," said Timothy Evans, energy analyst at
Citi Futures Perspective.
The oil market may get the impetus it needs to break
through its trading range with the release of the U.S. Energy
Information Administration fuel stocks report later on Thursday.
Analysts expected a 2.6 million-barrel drop in crude
inventories last week, which would be the fourth straight
drawdown in the world's largest oil user.
Gasoline stocks were forecast up 1.4 million barrels,
while distillates fell 600,000 barrels, a Reuters poll found.
Industry group American Petroleum Institute (API)
confounded analysts expectations on Wednesday by reporting a
3.1 million-barrel rise in crude, while gasoline supplies
dropped 3.1 million barrels in the week to Dec. 24.
Distillates rose 1.4 million barrels.
"The API data is certainly known to be more volatile than
the more definitive EIA report, so we would wait to see those
numbers before making any big decisions," Evans said.
WARMER WEATHER, WEAKER DOLLAR
Severe cold conditions in the U.S. Northeast, slammed by
one of the worst blizzards on record over the Christmas
holiday, have depleted fuel stocks and added support to oil
prices.
Warmer weather was expected to return this weekend for the
world's top heating oil market, curbing heating fuel demand
and pressuring crude prices.
Bearish sentiment was offset by a weaker dollar, which hit
a seven-week low against the yen and a 28-year trough against
the commodities-linked Australian currency after traders took
falls in U.S. bond yields as a cue to sell the greenback.
Oil and dollar-denominated commodities often move
inversely to the dollar. A weaker U.S. currency typically
lifts oil prices as it lowers the value of dollars paid to
producers while making it less expensive for oil consumers
using other currencies.
Technicals indicated oil prices may surge to $92.50 after
ending its consolidation period. []
For a 24-hour technical outlook on oil:
http://graphics.thomsonreuters.com/WT/20103012082332.jpg
(Editing by Himani Sarkar)
