Oil is up in early morning trade while U.S. crude inventories fell. The American Petroleum Institute reported Tuesday that stockpiles fell 4.5 million barrels, or 1.3%, in the latest week, marking the single biggest drop in six months. Eyes will be on the release of the Department of Energy's own weekly inventories data due out at 1030 ET to see whether signs of U.S. demand is solid. Gold, meanwhle, is lower on profit-taking, but many analysts believe that longer-term prospects for the yellow metal point upward. Given the lingering downside risks in the global economy and concerns about Europe's sovereign debt crisis in particular, gold is expected to retain its sheen as a safe haven. At 0800 ET, Brent crude is up 0.7% at $72.51 a barrel, while light sweet crude is 1.2% higher at $72.85 a barrel, and natural gas is 1.5% weaker at $4.74 a million British thermal units. Gold is 0.7% weaker at $1,236.40 an ounce, while silver is down 1.0% at $18.29 an ounce, and copper is up 2.3% at $2.84 a pound. While BP plc ( BP ) continues to struggle in stopping its well leak and clean up the Gulf of Mexico, the energy giant reported at its annual statistical review in London that it is working with oil priced between a range of $60 and $90 a barrel for planning investment. Meanwhile, BP reported that global consumption of oil fell by 1.2 million barrels a day in 2009, marking the second consecutive annual decline and the largest volume since 1982. In Russia, OAO Gazprom ( GAZP ) reported that 2011 gas production is seen rising to 528 billion cubic meters from 519 billion cubic meters this year. The company also said that it maya adjust the planned capacity of its South Stream gas pipeline which runs under the Black Sea to southern Europe if demand is uncertain. In the mining sector, BHP Billiton Ltd ( BHP ) and Rio Tinto plc ( RIO ) are offering monthly iron ore prices to Chinese steelmakers, only months after moving to a quarterly pricing arrangement from an annually based one, according to Metal Bulletin.

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