LONDON, Oct 28: World oil prices steadied on Friday amid expectations of rising demand for heating fuel during the peak-demand northern hemisphere winter, and signs of higher Chinese demand, dealers said.
New York’s main contract, light sweet crude for delivery in December, eased 14 cents to $60.95 per barrel in electronic dealing.
In London, the price of Brent North Sea crude for December delivery added 13 cents to $59.27 per barrel.
The market was worried “about the coming winter”, Societe Generale analyst Deborah White said.
“You have got the first indications of a rebound in Chinese oil demand” which “makes people less inclined to sell”, she added.
After a drop in Chinese oil demand growth during the first half of 2005, demand from China — the second biggest energy consumer after the United States — appeared to be regaining momentum.
Chinese oil demand growth rose 6.3 per cent during September, compared with the same month one year ago, after a 3.7 per cent increase in August, according to White’s own estimates.
US demand was also on the rise, according to Wednesday’s crude stockpiles report from the US Department of Energy (DoE).
The DoE said that distillate demand stood at 4.0 million barrels per day in the week ending October 21, while gasoline stood at almost 9.0 million barrels.
That marked a 400,000-barrels-per-day jump in distillates, which includes heating fuel and diesel, while gasoline (petrol) demand was unchanged on the previous week.
Crude inventories rose 4.4 million barrels as stockpiling continued after recent hurricane weather in the US Gulf Coast, while distillates stockpiles fell 1.6 million barrels.—AFP
