OIL : Oil Tops $92, Eyes on Fed, Steady OPEC : Reuters

SINGAPORE, Jan 30 (Reuters) - Oil climbed to a two-week high above $92 a barrel on Wednesday, as investors anticipate that a second U.S. interest rate cut this week will overshadow news of a a build in U.S. crude stockpiles.

Expectations OPEC will leave production levels unchanged when it meets in Vienna this week also bolstered prices.

U.S. crude rose 75 cents to $92.39 a barrel by 0208 GMT, extending gains of 65 cents a day ago. London Brent crude were up 57 cents to $92.57 a barrel.

The U.S. Federal Reserve began a two-day meeting on Tuesday that was expected to end with the second interest rate cut in just over a week.

Following the cut on Jan. 22, investors have widely bet the Fed would keep slashing to head off a recession, given the worsening financial market conditions. [nN29609260]

"There are expectations for a rate cut, which will give an incentive to the U.S. economy," said Tetsu Emori, a fund manager at Japan's Astmax Co Ltd.

U.S. economic data released Tuesday was mixed, with stronger-than-expected orders for U.S.-made durable goods in December countering a record fall in house prices in November.

With the potential for a Fed cut looming, investors put a forecast for a rise in crude supply in the United States on the backburner.

A Reuters poll of analysts ahead of weekly U.S. government inventory data forecast a 2.4 million barrel rise in crude stocks, a 1.9-million-barrel build in gasoline stockpiles and a 1.7-million-barrel distillate draw. [EIA/S]

Expectations OPEC will leave production levels unchanged when it meets this week in Vienna, despite calls from the U.S. and other consumers for the cartel to open the taps to bring down prices, added to the bullish sentiment.

Ecuador's oil minister said on Tuesday oil supplies to global markets were adequate and there was no need for OPEC to change output at its upcoming meeting.

U.S. Energy Secretary Sam Bodman reiterated calls for OPEC to increase output to help rebuild global inventories.

Iran Oil Minister Gholamhossein Nozari told an Iranian newspaper "there was no need to supply more oil as the market was supplied sufficiently and its conditions were stable."

Prices nudged up on news that output from the giant Cantarell oil field in Mexico, one of the top suppliers to the U.S., was expected to fall this year by 200,000 barrels per day (bpd). Production at the field was running at around 1.26 million bpd in December.