World oil prices steadied yesterday in quiet trade, as traders awaited a key report expected to show that recent freezing weather boosted heating fuel demand in the United States, analysts said.

New York's main futures contract, light sweet crude for delivery in February, eased three cents to $78.84 a barrel. Brent North Sea crude for February won 20 cents to reach $77.84 in London trading.

The US government's Department of Energy was due to publish its regular update on crude oil inventories for the week ending December 25.

Oil prices advanced on Tuesday on expectations of a large drop in stockpiles in the United States, which is the world's biggest energy consuming nation, followed by number two China.

Market expectations are that US reserves of distillates, which include diesel and heating fuel, fell by 2.1 million barrels last week, according to analysts polled by Dow Jones Newswires.

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