Oil prices held steady on Wednesday as traders awaited key inventory data in the United States, the world's biggest energy consumer, and a fresh outlook on the US economy from the Federal Reserve. US light crude rose 30 cents to $47.56 a barrel, a little more than $8 below the record $55.67 struck last October but $6 above the average price for 2004 at $41.48. London's Brent crude rose 1 cent to $45.40 a barrel. Dealers said on Wednesday's price rise was exaggerated by a lack of liquidity with many market players in London for an industry function.
After two weeks of declines, US crude stocks are expected to rise by 1 million barrels, a Reuters poll of 13 analysts showed, although forecasts were mixed between a 3 million-barrel increase and a decline of 1.75 million barrels.
Stockpiles in the United States are already about 8 percent higher than they were last year, the last report from the US Energy Information Administration (EIA) showed. The EIA releases its weekly report on Wednesday.
"Everybody has a different view on today's data. A lot of people will also be watching Greenspan to find out what's really going on with the US economy," said Mark Wagons, president of California-based Excel Futures.
"I think prices will stay both sides of unchanged for the moment, assuming nothing happens in the Middle East," he said. Federal Reserve Chairman Alan Greenspan will deliver a twice-yearly report to the US Congress this week on the health of the world's biggest economy.
Oil traders will be watching for any sign of concern that high-energy costs have hit growth.
US oil prices, which have held within a $45-$50 range since January, were boosted last week on projections of a continued tight market in 2005 and signals of another output cut from the Organisation of the Petroleum Exporting Countries.
The International Energy Agency, which advises industrialised nations on energy policy, has forecast stronger demand growth and lower non-Opec supply this year.
Opec has warned of a possible pre-emptive production cut ahead of the cartel's March 16 meeting if fuel stocks rise too quickly or prices drop sharply ahead of the second quarter, when oil demand ebbs at the end of winter.
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