NYMEX-Crude slightly up on big EIA drawdown

* EIA: Crude stocks down, product supplies up

* Dollar hits six-month high against the euro

NEW YORK, Jan 27 (BestGrowthStock) – U.S. crude oil futures were slightly
higher on Wednesday after government data showed an unexpected large
drawdown in crude inventories last week.

The Energy Information Administration data essentially validated a
smaller drawdown reported by the American Petroleum Institute on Tuesday.

Crude’s rise to higher ground was labored, however, with traders saying
that last week’s inventory decline was a result of weather-related delays
in import offloading.

Heating oil futures hung on to marginal gains as EIA data showed
distillate stocks, including heating oil and diesel, posted only small
increases.

Gasoline futures played near unchanged, with EIA data showing a
larger-than-expected stock build.

Earlier, crude futures were down ahead of the EIA data.

“The EIA crude draw may be partially related to disruptions in import
offloading in the Gulf Coast. The product builds are weather-related, with
demand down as people were stuck at home due to recent bad weather,” said
Mark Waggoner, president of Excel Futures in Newport Beach, California.

“Today traders are awaiting the end of the FOMC meeting to see what it
will do with interest rates, and also awaiting the State of the Union
address by President Obama before making investment decisions,” he added.

The Federal Open Market Committee will conclude a two-day meeting at
about 2:15 p.m. EST (1915 GMT). For details, see [ID:nN26106537]

U.S. equities fell after data showed new home sales dropped unexpected
in December. [.N]

The dollar rose to a six-month high against the euro, with investors
cautious before the end of the FOMC meeting. [USD/]

PRICES

* On the New York Mercantile Exchange at 11:40 a.m. EST (1640 GMT),
March crude (CLH0: ) was up 15 cents, or 0.2 percent, at $74.86 a barrel,
trading from $73.90 to $75.09.

* In London, March Brent crude (LCOH0: ) was up 16 cents, or 0.22
percent, at $73.45, trading from $72.65 to $73.62.

* NYMEX February RBOB (RBG0: ) was up 0.29 cent, or 0.15 percent, at
$1.9719 a gallon, trading from $1.9384 to $1.9807.

* NYMEX February heating oil (HOG0: ) was up 0.36 cent, or 0.18 percent,
at $1.9544 a gallon, trading from $1.9354 to $1.9645.

* NYMEX February products contracts expire on Friday.

* The March/March heating oil crack spread (0#CL-HO=R: ) was at $7.64,
after ending at $7.68 on Tuesday. The March/March RBOB crack spread
(0#RB-CL=R: ) was at $8.28, after ending at $8.31 on Tuesday.

* The spread between the current front month and the five-year forward
crude contract (CLc61: ) was at $13.98, based on the March 2015 contract
Tuesday settlement at $88.84. The spread ended Tuesday at $14.13.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $76.89/$79.08

Technical support/resistance:

NYMEX crude: $74.00/$75.39

NYMEX heating oil: $1.95/$2.00

NYMEX RBOB: $1.96/$2.00

For a full report on technicals, click on [ID:nLDE60Q178]

MARKET NEWS

* EIA said domestic crude stocks fell 3.9 million barrels last week,
against expectations for a 1.4 million barrel build in a Reuters poll, but
much larger than the API’s 2.2 million barrel drawdown. [EIA/S]

* Stocks at the Cushing, Oklahoma, NYMEX delivery hub fell by 700,000
barrels.

* Distillate stocks rose 400,000 barrels, against the forecast for a
1.7 million barrel decline and API’s 2.0 million barrel drawdown.

* Gasoline stocks rose 2.0 million barrels versus the forecast for a
1.1 million barrel build and larger than API’s 916,000 barrel increase.

* Sales of newly built U.S. single-family homes fell unexpectedly in
December, a sign that the government-led housing recovery might be losing
some steam. [ID:nN26112107]

* After a milder start to the week, a cold front was predicted to bring
widespread snow to the U.S. Northeast while the Midwest was getting a blast
of arctic air. [ID:nN1954]

Investing

(Reporting by Gene Ramos and Robert Gibbons;
Editing by John Picinich)

NYMEX-Crude slightly up on big EIA drawdown