(Repeats to fix formatting)
SINGAPORE, Jan 4 (Reuters) - Oil was steady near the
highest price levels in more than two years as accelerating
manufacturing activity in industrialized economies and winter
weather fanned optimism that U.S. crude inventories will
continue to drain.
FUNDAMENTALS
* U.S. crude for February <CLc1> gained 5 cents to $91.60
a barrel at 0047 GMT, less than a dollar from Monday's peak of
$92.58 on Monday, the highest intraday price since early
October 2008.
* Crude oil inventories in the U.S., the world's top
consumer, fell for the fifth straight time last week, down by
1.7 million barrels, as refiners continued to use up more of
their stored supplies while holding off on imports to lower
their year-end taxes, a Reuters poll ahead of weekly supply
data showed on Monday.
* Still, U.S. stockpiles of gasoline and distillates
including heating oil and diesel probably increased in the
week ending Dec. 31, analysts said.
* Distillate stocks were projected to have gained 300,000
barrels on average as overall demand remained unchanged,
according to the poll, while gasoline inventories were also
forecast to have added 300,000 barrels.
* Industry group the American Petroleum Institute will
release its inventory report on Tuesday at 2130 GMT, while the
U.S. Energy Information Administration will follow with
government statistics at 1530 GMT on Wednesday.
* Manufacturing in the United States and Europe
accelerated in December, while growth in China and India
slowed to more sustainable levels in another boost for the
global economic outlook. []
* The deceleration in manufacturing growth in China and
India eased some concerns about possible overheating in Asia.
South Korea's factories posted their biggest surge in seven
months.
* Total U.S. heating demand this week was expected to be
only 0.5 percent above normal, the U.S. National Weather
Service said, and heating oil demand 4.3 percent below normal.
[]
But looking further out, the NWS' six- to 10-day and eight-
to 14-day outlook issued Sunday called for below-normal or
much-below-normal readings for the entire nation.
Temperatures in northern Europe also were forecast to be
near to below normal in the six- to 10-day outlooks, according
to private forecaster DTN Meteorlogix. []
MARKET NEWS
* Japan's Nikkei average rose 1.2 percent on Tuesday after
global shares resumed their rally on stronger manufacturing
data the day before.
* World stocks rallied in the first trading session of
2011 on Monday, while U.S. Treasuries prices fell as the
manufacturing numbers -- which followed positive U.S. economic
data last week -- suggested the world recovery continues to
gain momentum, encouraging investors to take on more risk.
DATA/EVENTS
0000 U.S. Total Vehicle Sales Dec
0900 Germany Unemployment rate Dec 2010
1000 EZ Inflation, flash yy Dec 2010
1245 U.S. ICSC chain stores yy Weekly
1500 U.S. Durable goods Nov
1900 U.S. FOMC minutes Dec 14/meeting
2130 U.S. API weekly oil stks Dec 31
RELATED NEWS
- Crude oil prices pulled back late in the open outcry
session on Monday after the U.S. Interior Department said it
will allow 13 companies to resume deepwater drilling in the
Gulf of Mexico without an additional environmental review.
[]
(Reporting by Alejandro Barbajosa; Editing by Ed Lane)
