LONDON, Dec 2: Oil prices rose on Friday amid forecasts that colder weather in the United States could drive up demand for heating fuel, dealers said. New York’s main contract, light sweet crude for delivery in January, gained 27 cents to $58.74 per barrel in electronic dealing.
In London, the price of Brent North Sea crude for January delivery added 47 cents to 56.62 dollars per barrel.
Crude futures had raced higher on Thursday amid forecasts of cooler temperatures in the US northeast during the northern hemisphere winter, and stronger-than-expected economic data.
The northeastern region accounts for some 80 per cent of total US demand for heating oil.
Meanwhile, analysts said that stronger-than-expected US data should help push oil prices higher as any increase in economic activity usually entails higher energy demand.
According to the US Department of Energy, inventories of distillate supplies, used to make heating oil and diesel fuel, jumped by 3.4 million barrels during the week that ended November 25.
Oil prices had fallen on Wednesday and into early Thursday following the jump in US heating fuel stocks that eased worries of a possible supply shortage during the northern hemisphere winter.—AFP
