SINGAPORE, Sept 30 - Oil prices were steady in Asia on Tuesday ahead of data expected to show increased supplies in the United States. World crude prices have gained more than four percent since last week when OPEC announced surprise plans to cut official output from November 1 just as northern hemisphere winter demand is emerging. Benchmark New York Mercantile Exchange crude was up three cents at $28.43 per barrel at 0751 GMT. "If stocks replenish faster than expected we could see price weakness," one dealer said. "On the other hand if OPEC adheres to its output cuts, over which there is some scepticism, I'd expect the market to head up."
The U.S. government's Energy Information Administration is expected to report in data on Wednesday that an armada of imports boosted supplies last week in the U.S., the world's biggest energy market. Analysts polled by said they expected crude stocks to increase by more than one million barrels to nearly 282 million. Distillate stocks, including heating oil used heavily in winter, were seen building by almost one million barrels to about 132 million, while gasoline stocks were seen shooting up two million barrels to 198.8 million. Such a build in stocks would be reassuring for consumers heading into the peak demand winter season, but OPEC production cuts were expected to keep a floor under prices. The Organisation of the Petroleum Exporting Countries plans to reduce official output of 10 of its members by 3.5 percent to 24.5 million barrels per day from November 1. On Monday, Indonesian Oil Minister Purnomo Yusgiantoro said OPEC hoped non-aligned producers would also cut a combined 500,000 bpd to support OPEC's efforts. Purnomo, who will take over as OPEC president on January 1, said there were concerns about falling prices next year due to oversupply, which he said was estimated at about 1.4 million bpd. Non-OPEC suppliers Norway and Mexico have already said they do not plan to cut output although Russian President Vladimir Putin has said Russia would cut production if prices fall drastically. OPEC ministers will meet again on December 4 to set production for the first quarter of 2004.//