Crude traded near a 26-month high in New York on speculation the U.S. Energy Department will report a drop in weekly stockpiles, signaling demand is growing in the world’s biggest oil-consuming nation. Oil traded close to $91 a barrel for a fifth day as a Bloomberg News survey showed inventories probably fell for a fourth week, extending the longest decline in a year. Futures dropped yesterday after the industry-funded American Petroleum Institute said supplies rose 3.06 million barrels, or 0.9 percent, to 345.1 million. “It’s possible for the market to rise from the beginning of next year, but for now, crude oil will be steady, slightly above $90,” said Ken Hasegawa, a Tokyo-based commodity derivatives sales manager at Newedge, a brokerage. “There’s a lot of inventory, therefore it’s not easy to go higher.” Crude for February delivery was at $91.31 a barrel in electronic trading on the New York Mercantile Exchange, up 19 cents, at 1:07 p.m. Singapore time. Yesterday, it lost 37 cents to $91.12. The contract traded at $91.88 on Dec. 27, the highest since Oct. 7, 2008. Futures have gained 15 percent this year. U.S. oil inventories probably fell 2.85 million barrels in the week ended Dec. 24, based on the median estimate from 14 analysts polled by Bloomberg News. Stockpiles decreased in the previous three weeks to 340.7 million, 6.8 percent above the five-year average, according to the Energy Department. The department will release its Weekly Petroleum Status Report at 11 a.m. in Washington today, a day later than usual because of the Christmas holiday. Third-Worst Performer Oil, which rallied 78 percent in 2009, is the third-worst performer this year among 22 commodities tracked by Bloomberg, as rising supplies countered optimism fuel consumption is recovering. Natural gas and cocoa are the worst performers. Gasoline stockpiles probably rose 1.5 million barrels from 217.2 million, the Bloomberg News survey showed. Distillate fuel inventories, including heating oil and diesel, are expected to have slipped 625,000 barrels from 160.7 million. U.S. gasoline demand at the pump climbed 4.6 percent last week, according to MasterCard Inc. Motorists bought an average 9.613 million barrels a day in the week to Dec. 24, the second- largest payments network company said in its SpendingPulse report Dec. 28. Brent crude for February settlement traded at $94.28 a barrel, up 14 cents, on the London-based ICE Futures Europe exchange. To contact the reporter on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net

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