US oil prices surged to a 26 month high of $91.88 a barrel , as forecasts for warmer weather in the US Northeast offset expectations for a further drawdown in crude stocks in the world's largest oil user driven by unusually cold weather, rising appetite for risk assets and signals from OPEC it would not arrest the rally.NYMEX crude for February delivery slipped 12 cents to $91.37 a barrel ,while Brent crude fell 14 cents to $94.24.
Oil also found support from heavy US holiday travel, which boosted retail gasoline demand by 4.6 percent last week. US gasoline futures rose 0.57 cents to $2.4101 a gallon.
Crude inventories in the world's biggest economy were pegged to have fallen 2.9 million barrels, while gasoline stocks were seen up 1.5 million barrels.Cool weather has boosted the needs, which includes heating oil and diesel fuel, and US stocks were expected to have fallen 500,000 barrels last week.
US Energy Information Administration (EIA) will issue its weekly inventory data report on thursday, delayed by a day due to the Christmas holiday.
Evidence of growing bullish sentiment was provided by a record high of net long crude oil positions on the New York Mercantile Exchange in the week to Dec 21.Technicals point to oil prices consolidating between $90.12 and $91.50.
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