Oil steady on Venezuela cuts but US stocks healthy

TOKYO, Feb 13 (Reuters) - Oil held below $93 a barrel on Wednesday, as concerns over Venezuela's move to halt shipments to U.S. major Exxon Mobil Corp were countered by an expected build in crude inventories in the world's largest consumer.

U.S. crude for March CLc1 dropped 4 cents at $92.74 a barrel by 0419 GMT, while London Brent crude LCOc1 shed 1 cent at $92.85.

President Hugo Chavez's decision to cut oil exports to Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz) on Tuesday came after the largest company in the United States won a court decision freezing $12 billion of Venezuela's overseas assets in a fight for compensation after Chavez seized a heavy oil project last year. [ID:n2250716]

"I think these prices reflect some short covering in the market, but I don't see these conditions as something that will continue long term," said Kaname Gokon, deputy general manager at Okato Shoji Co's research section.

Top global oil producers have assured the United States they can make up for a major supply disruption should Venezuela cut exports, a U.S. government official told Reuters on Tuesday. [nN12261633]

But even if supplies fall, oil inventories in the United States look healthy.

An expanded Reuters poll ahead of Wednesday's U.S. government data showed forecasts for an average 2.7 million-barrel build in crude stocks due to strong imports and a low level of refinery utilisation. That would mark the fifth consecutive weekly rise in crude inventories amid concerns that the slowing U.S. economy would dampen oil demand.

Analysts also forecast a 1.8 million-barrel increase in gasoline stocks, while distillates are expected to drop 1.4 million barrels. [EIA/S]

In addition, the head of the International Energy Agency (IEA) said on Tuesday that OPEC should maintain current crude output levels in order to build up global oil stockpiles in the second quarter, and expressed concern about Venezuela's move against Exxon. [ID:nN12292545] [ID:nN12292722]