* 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)
By Zaida Espana
LONDON, Dec 30 (Reuters) - Oil prices slipped under $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> fell 37 cents to
$90.75 a barrel by 1151 GMT. ICE Brent crude <LCOc1> shed 30
cents to $93.84.
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.
Focus will come from the release of the U.S. Energy
Information Administration's latest weekly reading due 1600 GMT.
Analysts forecast a 2.6 million barrel drawdown in crude
inventories, potentially marking the fourth straight weekly
fall. []
Middle distillate stocks are expected to have fallen 600,000
barrels, according to the survey, as abnormally cold weather
stimulated demand; while gasoline stocks are forecast up 1.4
million barrels.
But Wednesday's report by industry group American Petroleum
Institute (API) confounded analysts' expectations with a 3.1
million-barrel rise in crude stocks. []
The API data also showed a build of 4.1 million crude
barrels in the MidWest, or PADD 2.
"If the DOE was to confirm the API, then at 99.1 million
barrels it would be the highest level ever for crude oil stocks
in the Midwest (Padd2)," Petromatrix's Olivier Jakob said, which
could pressure prices.
VOLUMES THIN AHEAD OF NEW YEAR
Volumes were thin with 14,085 deals by 1149 GMT compared
with a daily average of around 105,369 over the past three days.
"It's relatively quiet trading today with a very short range
and low volatility, (the prices have done) just a few cents in
both directions," Commerzbank commodities analyst Daniel
Briesemann said.
"We must wait until beginning of next year to get a clearer
picture of where prices will go."
Elsewhere, 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
United States - lifted benchmark interest rates last weekend,
the second in just over two months.
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
Keiron Henderson)
