LONDON (Dow Jones)--Crude futures were steady Thursday, but pared losses from Asian trade that had followed Wednesday's rally, as participants continued to shrug off Wednesday's bearish U.S. oil inventory data and instead took confidence from positive macroeconomic releases and expectation of improves market conditions in 2011. "There is general feeling that the economic situation will improve, and people are now seeing the sell-off in the middle of November as a buying opportunity after improved manufacturing data in China and the U.S.," said Ole Hansen, manager of futures and fixed income at Saxo Bank in Copenhagen. "The market has decided to look ahead to 2011, expecting higher prices, as demand and supply fundamentals come into balance," he said. At 1144 GMT, the front-month January Brent contract on London's ICE futures exchange was higher 26 cents at $89.13 a barrel. The front-month January contract on the New York Mercantile Exchange was trading 8 cents lower at $86.67 a barrel. The ICE's gasoil contract for December delivery was higher $10.75 at $745.50 a metric ton, while Nymex gasoline for January delivery was up 1.21 cents at $2.3125 a gallon. The oil market was swept up by a new wave of economic optimism Wednesday, which helped prices close in on November highs, after data showed China's official purchasing mangers index rose in October, while in the U.S. productivity rose more than expected in the third quarter, and private-sector jobs recorded the largest monthly gain in three years, bolstering confidence in the economy and igniting hopes of a recovery in crude and oil product demand. Amid the new-found optimism on the oil market on the back of improved economic sentiments, analysts cautioned that the market could easily reverse its gains if forthcoming macroeconomic releases prove to be negative. "A continued flow of positive news could easily push Brent above $90/bbl but disappointments could trigger a substantial correction lower," said Filip Petersson of SEB Commodity Research. Meanwhile, crude prices are expected to glean support from a stronger euro against the dollar, amid a growing perception that the European Central Bank will announce its readiness to provide more money to deal with the eurozone sovereign debt crises, during a press conference at 1330 GMT Thursday. A weaker dollar typically helps crude prices, as it makes oil cheaper for buyers holding other currencies. In a report that was largely sidelined by positive economic data, the U.S. Department of Energy said crude stockpiles rose by 1.1 million barrels last week, surprising analysts who on average had expected a decline. Gasoline stockpiles rose by 600,000 barrels, compared with expectations for no change, while stocks of distillates, which include heating oil and gasoline, fell by 200,000 barrels. Analysts had expected a drop of 1.1 million barrels.

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