LONDON, Dec 8: Oil prices rebounded on Thursday with cold temperatures set to continue in the US northeast, the world’s biggest regional consumer of heating fuel, analysts said.
Markets were meanwhile looking ahead to next Monday’s meeting of OPEC to discuss the oil cartel’s output levels.
New York’s main contract, light sweet crude for delivery in January, rose 59 cents to 59.80 dollars per barrel in pit trading.
In London, the price of Brent North Sea crude for January delivery gained 91 cents to 57.89 dollars per barrel in electronic trading.
The market was “still focusing on the prospect of cold weather in the US increasing demand” for heating fuel, analysts at the Sucden brokerage firm said.
“Colder than normal temperatures are forecast to continue until this weekend, increasing demand and adding support to the market.”
Crude futures had fallen on Wednesday after official data revealed sharp rises in US energy stocks over the past week.
The US Department of Energy said that crude stocks increased by 2.7 million barrels for the week that ended December 2 to total 320.3 million barrels, higher than the expected gain of 2.1 million barrels.
Crude stocks levels are now some 11 per cent higher than at the same stage last year.
Distillates, used for heating oil and diesel fuel, also rose 2.7 million barrels to stand at 130.6 million, the DoE said. Market forecasts had been for a build of 1.7 million barrels.
The 11-nation Organization of Petroleum Exporting Countries has no reason to change policy at the meeting because the oil market is well supplied and prices are at an acceptable level, analysts said.
Several OPEC ministers have already indicated that they would renew their production quota next week, which stands at 28 million barrels per day (bdp).—AFP
