By Randy Fabi
U.S. light crude for March delivery
"The U.S. economy just attracts more bad news and demonstrates its fragility," said Robert Laughlin of MF Global. "For oil, demand will slip and prices should come under renewed pressure in the short-term."
Fears the U.S. will slide into a full-blown recession in the wake of a housing slump and the resulting credit crunch have dampened the outlook for global energy demand growth, pulling oil back from a record-high above $100 a barrel hit in early January.
A Reuters poll ahead of Wednesday's EIA report calls for a
2.6 million-barrel build in crude stocks, a 1.9 million-barrel
decline in distillate stocks and a 2.0 million-barrel increase
in gasoline stocks.
The Organization of the Petroleum Exporting Countries (OPEC) could keep output at current levels when its ministers meet next month if there is no change in the market, Secretary-General Abdullah al-Badri said on Tuesday.
Separately, ships were moving outbound on the Houston Ship Channel early Tuesday afternoon after an overnight shutdown due to fog, the U.S. Coast Guard said. Between 65 and 70 ships were waiting to enter or exit the channel, it said.
