20 December 2005, 12:10  Oil inches up ahead of anticipated U.S. stock draw

Oil prices rebounded slightly on Tuesday after four consecutive days of sharp losses, with traders looking ahead to an expected draw in weekly U.S. crude inventories. U.S. January light crude rose 19 cents to $57.53 a barrel by 0757 GMT after dropping 72 cents on Monday, touching their lowest price in three weeks. London Brent gained 19 cents to $56.30 a barrel. U.S. crude stocks probably fell 1.3 million barrels last week due to lower imports and higher refinery runs, a Reuters poll of nine analysts forecast, the first draw in three weeks. "Even if there is a stock draw, unless it is substantially and unexpectedly high, I would not expect prices to go up above $60 as the near-term market is still heavily weighed down by high inventory levels and the warmer weather," said Tony Nunan, a manager with Mitsubishi Corp's risk management business. Analysts say crude oil stockpiles in the world's biggest consumer still appear quite comfortable at around 13 percent above last year's levels.

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