* Coming up: U.S. EIA inventory data at 1600 GMT
* Analysts forecast drawdown in U.S. crude stocks
* Dollar falls to seven-week low against yen
(Updates quotes, prices, pvs SINGAPORE)
By Zaida Espana
LONDON, Dec 30 (Reuters) - Oil prices were flat above $91 in
thin trading volumes on Thursday before the release of the
latest weekly U.S. oil inventory data, which is expected to show
a drawdown in crude stocks for the fourth consecutive week.
U.S. crude for February delivery <CLc1> was up four cents at
$91.16 a barrel by 0950 GMT. ICE Brent crude <LCOc1> added three
cents to $94.17.
Prices have traded range-bound near $91 a barrel after
touching 26-month highs of $91.88 a barrel at the start of the
week.
Trading volumes were thin with 7,492 trades by 0950 GMT
compared with an average of around 105,369 over the past three
days.
"Futures markets continue to be dominated by a lack of
trading volume and prices are therefore kept in a very narrow
trading range," Petromatrix's Olivier Jakob said in a note.
"The release of the DOE data might give a little burst of
trading but if the NYMEX will be open tomorrow we will expect
that volume will fall to a record low on New Year's Day."
Some support came from a weaker dollar, which fell to
seven-week lows against the yen and 28-year lows against the
Australian currency. []
A weaker greenback can render dollar-denominated commodities
such as oil more accessible to buyers holding other currencies.
The yuan <CNY=CFXS> rose to a record of 6.613 against the
dollar after a senior Chinese central bank official said a
gradual appreciation would help curb inflation and rebalance the
economy.
Data showing that Chinese manufacturing inflation was easing
lent weight to expectations the government will stick to a more
gradual, versus aggressive monetary tightening policy.
[]
China - the world's second-biggest oil consumer after the
U.S. - lifted benchmark interest rates last week, the second one
in just over two months.
Analysts polled by Reuters expect China will rise interest
rates again before the end of the year. []
FOCUS ON EIA DATA
Prices could get further support from U.S. Energy
Information Administration data due at 1600 GMT.
Analysts expect crude inventories will show a 2.6
million-barrel draw, which would be the fourth straight drawdown
in the world's largest oil user. []
Gasoline stocks are forecast up 1.4 million barrels and
distillates down 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. []
For a 24-hour technical outlook on oil, see:
http://graphics.thomsonreuters.com/WT/20103012082332.jpg
(Additional reporting by Randy Fabi in Singapore; editing by
Alison Birrane)
