-- Oil prices rangebound, supported by geopolitical tensions.
-- Further price gains unlikely without an escalation in supply-side concerns.
-- DOE inventory data due out later Wednesday.
By Sarah Kent
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Crude prices were steady Wednesday, still supported by geopolitical concerns, though the price climb seen in the first week of January seems to have lost its upwards momentum.
At 1055 GMT, the front-month February Brent contract on London's ICE futures exchange was five cents higher at $113.33 a barrel.
The front-month February contract on the New York Mercantile Exchange was trading down 41 cents, or 0.4%, at $101.83 a barrel.
Investors remained focused on geopolitical risks to supply, as tensions between Iran and the West remained high and strikes against the removal of Nigeria's fuel subsidies continued into their third day.
"Iran and Nigeria are the major factors," said Carsten Fritsch, analyst at Commerzbank, although he said that the upside from these risks may have been exhausted for the time being.
"There is some kind of fatigue in the market, so we need some further escalation to warrant a price move higher," he said.
Without a fresh deterioration in the political standoff between Iran and the West or some other supply disruption, prices are likely to remain rangebound and focus could begin to switch back to the downward pressures presented by global economic weakness and the euro zone debt saga, analysts said.
"There is room for prices to come off a little bit," said Andrey Kryuchenkov, vice president of commodities research at VTB Capital, though he said any pullback would be limited while the potential for disruptions in the Gulf remained.
"I wouldn't short oil at the moment. I would bet on volatility; that is going to be a dominant feature," he said.
Later in the day attention may briefly turn to the latest inventory figures from the DOE, due 1530 GMT.
According to a Dow Jones survey of analysts, the data are expected to show crude oil stocks rose by 1.1 million barrels last week, while gasoline stocks are seen rising by 2.1 million barrels. Stocks of distillates, which include heating oil and diesel fuel, are expected to have risen by 1.9 million barrels.
At 1055 GMT, the ICE's gasoil contract for February delivery was down $2.25, or 0.2%, at $971.75 a metric ton, while Nymex gasoline for February delivery was 27 points, or 0.1%, higher at $2.7755 a gallon.
-By Sarah Kent, Dow Jones Newswires; 4420-7842-9376; sarah.kent@dowjones.com
