Oil steady ahead of US data as mild weather lingers

SEOUL, Dec 28 (Reuters) Oil prices steadied above $60 on Thursday after losing $3 over the last four sessions on mild U.S. weather, with dealers focusing on weekly oil data expected to show a drop in crude and a rise in heating fuel stocks.

U.S. light crude futures gained 6 cents at $60.40 a barrel by 0322 GMT, while Brent crude rose 3 cents to $60.55.

''U.S. oil data will probably show a drop in (crude) inventory levels which is likely to encourage oil prices to stay above $60,'' said James Kim, a Seoul-based analyst at Woori Investment and Securities.

A Reuters survey showed that crude oil inventories in the world's top energy consumer the United States were expected to have fallen by 1.8 million barrels following shipping disruptions caused by fog and because of OPEC's export curbs.

But the figures, to be released later on Thursday, are likely to show a 400,000-barrel rise in distillate stocks, which include heating oil, due to the unexpectedly warm weather.

Mild winter weather put a quick damper on brief gains at the start of this week, when prices rallied on concerns that Iran might disrupt oil flows in response to U.N. sanctions against its nuclear weapons programme.

U.S. forecasters said on Wednesday the mild weather was likely to continue throughout the winter.

Warm temperatures have also cut fuel demand in Japan, the world's third-biggest oil consumer, where stocks of kerosene for heating are more than a third higher than a year ago.

Oil prices have hovered within $5 of $60 a barrel for three and a half months, with analysts mixed on next year's outlook.

Some analysts say OPEC's move to reduce output has stabilised the market and new flows of investment money could push prices higher early next year. Others say a U.S. economic slowdown and rising levels of non-OPEC oil supply might pull prices down.

In Iran, the country's parliament passed a bill on Wednesday obliging the government to revise its level of co-operation with the IAEA nuclear watchdog and to ''accelerate Iran's nuclear activities'', after the United Nations approved the sanctions.

The move by Iran's parliament prompted the White House to say that further non-compliance by Tehran on its nuclear programme would only ''worsen its situation'' in the international community.

REUTERS CS GC1136