November 09, 2006	Thursday	Shawwal 16, 1427

LONDON, Nov 8: World oil prices rose strongly on Wednesday following a larger-than-expected fall in US stocks of distillates, which includes heating fuel, ahead of the peak-demand northern hemisphere winter.

Meanwhile, analysts played down talk that the US Congressional election would have a pronounced impact on the crude market, and particularly on American foreign policy in the oil-rich Middle East.

New York's main contract, light sweet crude for delivery in December, added 82 cents to $59.75 per barrel in pit trading.

In London, Brent North Sea crude for December delivery gained 85 cents to $59.33 per barrel in electronic deals.

“The market is reacting to the 2.7 million draw in distillate, which is basically three times more than expected,” said Societe Generale analyst Deborah White.

The US Department of Energy (DoE) said that levels of distillate products, such as heating oil and diesel, sank 2.7 million barrels to 138.6 million in the week to November 3. That was far bigger than the expected fall of 800,000 barrels. However, warmer US weather should allow them to bounce back in the coming weeks, traders said.—AFP