Oil was steady yesterday as the market awaited a slate of industry data for further signs of a possible US recession and weakening global demand that could extend the previous day's plunge of more than US$2.
US light crude for February delivery was down US8c at US$91.82 a
barrel, having tumbled by US$2.30 on Tuesday on a surprise drop in US retail sales in December and a record quarterly loss at the largest US bank, Citigroup.
February London Brent crude fell US4c to US$90.94 a barrel.
Industry analysts expect US crude inventories to have risen last week for the first time in nine weeks, calling for a 600,000-barrel rise as imports recovered.
Distillates would increase by 1 million barrels, and petrol by 2.5 million barrels, a Reuters poll showed.
Traders will also watch for the International Energy Agency's monthly report to be released today.
The IEA, adviser to 27 industrialised countries, last month raised its global demand forecast for 2008 by 200,000 barrels a day to 2.1 million barrels.
But some now expect the organisation to cut its forecast in light of the latest US economic data, which would send a bearish signal to the market.
US oil prices are down more than 8 per cent from their all-time peak of US$100.09, hit this month, as concern about a US economic slowdown has outweighed tightening stockpile levels in major consumer nations.
Oil was also affected on Tuesday when Saudi Arabia's Oil Minister, Ali al-Naimi, said the world's top exporter would raise output when the market needed more crude, responding to a US call for more supply after US President George W. Bush, on a tour of the Middle East, urged the Saudis to help tame soaring oil prices.
- REUTERS
