(Recasts, updates prices, market activity, new byline; changes
dateline from LONDON)
By Matthew Robinson
NEW YORK, Jan 30 (Reuters) - Oil steadied near $92 on
Wednesday as markets awaited news of an expected interest rate
cut by the U.S. Federal Reserve to stimulate the U.S. economy.
U.S. crude <CLc1> rose 15 cents to $91.79 a barrel by 12:33
p.m. EST (1733 GMT), while London Brent <LCOc1> fell 1 cent to
$91.99.
Prices gained in earlier activity on expectations OPEC will
keep production levels stable when it meets this week, despite
recessionary concerns in top oil consumer the United States.
A U.S. government report showing a 3.6 million barrel build
in crude inventories in the world's top consumer last week,
above analyst forecasts for a 2.4 million barrel rise, helped
erode the early gains. []
"The EIA numbers are not far from expectations and now,
everybody, including those in other financial and commodity
markets, will wait for the Federal Reserve's decision," said
Mark Waggoner, president of Excel Futures.
"In the meantime, expect crude oil futures to trade
range-bound."
The U.S. Energy Information Administration report showed
gasoline stocks up by 3.6 million barrels last week. Analysts
said the build as high energy costs and economic problems
caused consumers to scale back travel.
Worries of a possible U.S. recession were expected to
prompt the Fed to cut interest rates on Wednesday for the
second time in just over a week as the giant economy reels from
the housing slump and credit crisis.
U.S. gross domestic product grew at just 2.2 percent in
2007, the lowest growth rate since 2002, according to
government data released Wednesday.
"Once the Fed decision is out of the way, most financial
and commodity markets could again come under pressure," said
Edward Meir, analyst at broker MF Global in a research report.
Oil hit a record $100.09 a barrel on Jan. 3 partly on the
back of supply concerns, but has dropped back as the U.S.
slowdown forces analysts to revise demand forecasts lower.
U.S. Energy Secretary Sam Bodman on Tuesday reiterated
calls for OPEC to raise production to help lower prices.
But OPEC members, gathering in Vienna ahead of the Feb. 1
policy meeting, have offered little signs they will heed calls
from consumer nations and ramp up output.
"I don't think that OPEC should take any action now," said
the head of Libya's OPEC delegation Shokri Ghanem.
"We don't think we should do more than consultations and
wait until March."
(Additional reporting by Jane Merriman in London, Felicia Loo
in Singapore; Editing by David Gregorio)
