Singapore - U.S. oil prices held steady and continued to flirt with the $27 a barrel mark on Tuesday, with fresh data on U.S. oil supplies expected to show rising crude inventories but a fall in stocks of winter heating fuel.

U.S. light crude gained one cent to $26.96 a barrel following Monday's 18-cent loss in New York.

Brokers said the market remained finely balanced, watching supply and demand fundamentals and awaiting a final agreement at the United Nations over a resolution for the return of weapons inspectors to Iraq.

"The mood in the market remains muted as the prospect of a war at some stage remains, but not just yet. The markets are therefore reverting to the fundamentals and are not being reassured by what is there," said a daily note from NM Rothschild & Sons in Sydney. "Demand is hardly robust at the moment and there is surplus OPEC capacity."

The prospect of war in the Middle East and potential for supply disruptions in the oil-rich region, which supplies one-third of global oil requirements, pushed crude past $30 earlier this year.

But the market has fallen more than 10 percent since the beginning of October as the prolonged debate at the UN Security Council reduced the chance of any imminent military strike against Iraq.

The United States expects to submit an amended resolution on Iraq to the UN in the next few days. It has met stiff opposition from France and Russia over its draft proposal, which warned of tough measures if Baghdad failed to comply with UN demands.

???????OPEC's Extra Barrels?????? Traders are also keenly watching weekly figures on fuel stockpiles in the United States as the northern hemisphere heads into winter, the peak demand season for heating oil.

Oil stocks in the United States are running below year-ago levels, but at the same time a surge in output by the OPEC cartel has kept markets flooded with crude.

Venezuela was the latest OPEC member seen to be lifting output beyond official limits agreed by the cartel at a ministerial meeting in September.

According to data from state-owned Petroleos De Venezuela obtained by Reuters, Venezuela plans to raise production by 50,000 barrels per day (bpd) in November to 3.126 million bpd against and OPEC quota of 2.497 million bpd.

Iran, Saudi Arabia and Kuwait also have been seen pushing additional term barrels to Asia, the biggest regional importer of Middle East crude.

A Reuters survey last week put overproduction at the 10 OPEC members under quota restraints, excluding sanctions-bound Iraq, at 3.21 million bpd in October. The group has an official ceiling of 21.7 million bpd.

The American Petroleum Institute (API) is due to release its weekly report on U.S. fuel stocks after the close of trading in New York later on Tuesday.

A Reuters poll of analysts forecast crude inventories to rise for the fourth week in a row by 1.9 million barrels due to higher imports and restrained production at refineries.

Analysts saw distillate stocks, which include winter heating fuel, declining 800,000 barrels and for gasoline tanks to decrease by 1.25 million barrels.

Utilization at U.S. refineries was expected to go up by one percentage point to 87.5 percent of capacity as units struggle to get back to the 92 percent utilization seen before storms hit the Gulf of Mexico and the gulf coast in late September and October.

bc-markets-oil markets-oil:oil hovers below $27, watches u.s.

fuel stocks singapore, nov 5 (reuters) - u.s. oil prices held steady and continued to flirt with the $27 a barrel mark on tuesday, with fresh data on u.s. oil supplies expected to show rising crude inventories but a fall in stocks of winter heating fuel.

u.s. light crude gained one cent to $26.96 a barrel following monday's 18-cent loss in new york.

brokers said the market remained finely balanced, watching supply and demand fundamentals and awaiting a final agreement at the united nations over a resolution for the return of weapons inspectors to iraq.

"the mood in the market remains muted as the prospect of a war at some stage remains, but not just yet. the markets are therefore reverting to the fundamentals and are not being reassured by what is there," said a daily note from nm rothschild & sons in sydney. "demand is hardly robust at the moment and there is surplus opec capacity."

the prospect of war in the middle east and potential for supply disruptions in the oil-rich region, which supplies one-third of global oil requirements, pushed crude past $30 earlier this year.

but the market has fallen more than 10 percent since the beginning of october as the prolonged debate at the u.n.

security council reduced the chance of any imminent military strike against iraq.

the united states expects to submit an amended resolution on iraq to the u.n. in the next few days. it has met stiff opposition from france and russia over its draft proposal, which warned of tough measures if baghdad failed to comply with u.n. demands.

opec's extra barrels traders are also keenly watching weekly figures on fuel stockpiles in the united states as the northern hemisphere heads into winter, the peak demand season for heating oil.

oil stocks in the united states are running below year-ago levels, but at the same time a surge in output by the opec cartel has kept markets flooded with crude.

venezuela was the latest opec member seen to be lifting output beyond official limits agreed by the cartel at a ministerial meeting in september.

according to data from state-owned petroleos de venezuela obtained by reuters, venezuela plans to raise production by 50,000 barrels per day (bpd) in november to 3.126 million bpd against and opec quota of 2.497 million bpd.

iran, saudi arabia and kuwait also have been seen pushing additional term barrels to asia, the biggest regional importer of middle east crude.

a reuters survey last week put overproduction at the 10 opec members under quota restraints, excluding sanctions-bound iraq, at 3.21 million bpd in october. the group has an official ceiling of 21.7 million bpd.

the american petroleum institute (api) is due to release its weekly report on u.s. fuel stocks after the close of trading in new york later on tuesday.

a reuters poll of analysts forecast crude inventories to rise for the fourth week in a row by 1.9 million barrels due to higher imports and restrained production at refineries.

analysts saw distillate stocks, which include winter heating fuel, declining 800,000 barrels and for gasoline tanks to decrease by 1.25 million barrels.

utilisation at u.s. refineries was expected to go up by one percentage point to 87.5 percent of capacity as units struggle to get back to the 92 percent utilisation seen before storms hit the gulf of mexico and the gulf coast in late september and october.