Wednesday, January 11 2006 10:44 Hrs (IST) - World Time -

Singapore: Oil prices were firmer in Asian trade today (Jan 11,2006)ahead of the release of US data expected to show a drop in heating oil stockpiles, dealers said.

At 11:10 am (0831 IST), New York's main contract,light sweet crude for delivery in February, was up 11 cents to 63.48 dollars a barrel from its close of 63.37 dollars in the United States yesterday (Jan 10,2006), recouping losses there.

"The market is quiet as it awaits for the release of US inventory data on Wednesday," said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo.

The United States is the world's biggest energy consumer and the release of its weekly energy stockpile figures are closely watched for the impact on global prices.

Emori said the market expects US inventories for crude oil and gasoline to rise but be 'neutral or down' for heating oil, which is in demand during the current northern hemisphere winter season.

There seems to be a strong resistance in the market for prices to go beyond 65 dollars while support should be at 62 dollars.

If prices fall below 62 dollars then they could tumble further to 60 dollars, he said.\

Emori said Iran's decision to resume nuclear research activities after a two-year suspension is likely to push oil prices higher in the long-term, given the wider concerns it provokes about the situation in the Middle East.

"It's a bullish (positive) factor for the long-term but not for the short-term. Iran is producing four million barrels of crude oil per day or 4.5 per cent of world production," he said.