* Cold snap across U.S., Europe boosts prices
* Eyes on Russia-Belarus oil price spat
* U.S. inventory data awaited for demand indications
(Adds US economic data, updates prices)
By Joe Brock
LONDON, Jan 5 (Reuters) - Oil climbed towards $82 a barrel
on Tuesday, rising for the ninth straight session, as cold
weather in key consumers the United States and Europe boosted
demand for heating fuel.
Investors were awaiting U.S. oil inventory data from the
American Petroleum Institute (API) later on Tuesday and the
Energy Information Administration (EIA) on Wednesday, expected
to show a drop in distillate stocks but steady crude
inventories.
U.S. crude for February delivery <CLc1> was up 14 cents at
$81.65 a barrel by 1513 GMT, off an earlier high of $81.99, a
cent below the October 2009 high, and after settling up $2.15 at
$81.51 on Monday, its highest close since Oct. 9, 2008.
London Brent crude <LCOc1> climbed 24 cents to $80.36.
"The extreme cold weather, spreading as far as China, is
supportive today," said Rob Montefusco, oil trader at Sucden
Financial.
"The (inventory) data will give us more direction, there
should be a draw in crude and distillates," Montefusco added.
Industry data from the API, due at 1930 GMT, is forecast to
show a 1.9 million barrel drawdown last week in distillate
stocks, which include heating oil and diesel fuel, while crude
stocks were seen unchanged and gasoline supplies higher. []
U.S. crude futures would reach the highest point since Oct.
14 2008 if they push above $82 and some analysts said it was the
anticipation that prices would rise above this psychological
point that had boosted oil recently.
"The price rise is not supported by fundamentals today, it
is investment driven," Eugen Weinberg, oil analyst at
Commerzbank, said on Tuesday.
"There is a lot of speculative demand given the fact that we
are close to $82, which was the intra-day high last year."
COLD SNAP CONTINUES
Frigid temperatures in the U.S. were expected to boost the
country's heating demand to 21 percent above normal, with
consumption in the U.S. northeast -- the largest heating oil
market -- seen 11 percent above average levels. []
[]
Unusually cold weather in Britain is expected to continue
into the second half of January after the coldest December since
1995, while lower temperatures in Europe were seen gradually
spreading from the northeast to the southwest during the next
few days. [] []
Heavy snow and biting cold also hit parts of Asia on Monday,
with unusually harsh winter weather snarling transport across
north China, South Korea and India. []
Investors were watching for any further developments between
Russia and Belarus, after an oil dispute saw Russia briefly cut
off supplies to the eastern European nation. Russia on Monday
said it had resumed supplies to refineries in Belarus, but
tension still simmers. []
U.S. data on Tuesday gave a mixed outlook for economic
recovery in the world's largest energy user.
Pending sales of previously owned U.S. homes fell more than
expected in November because of the end of a rush to beat the
initial expiration of a popular tax credit, but expected sales
are still up more than 15 percent from the year-earlier period.
Meanwhile, new orders at U.S. factories rose 1.1 percent in
November in their third straight increase. []
(Additional reporting by Jennifer Tan in Singapore; editing by
Keiron Henderson)
