November 16, 2006	Thursday	Shawwal 23, 1427

LONDON, Nov 15: World oil prices rose on Wednesday ahead of a weekly US energy report which was forecast to show falling heating fuel stockpiles in major consumer, the United States, dealers said.

The market was also supported by oil exporters' group Opec, which raised its forecast for average daily oil demand this year.

New York's main contract, light sweet crude for delivery in December, gained 32 cents to $58.60 per barrel in electronic deals before the official opening of the US market.

In London, Brent North Sea crude for December delivery added 41 cents to $59.25 per barrel in electronic trading. The contract expires at the close.

The US Department of Energy was due later on Wednesday to publish its weekly snapshot of energy reserves in the week ending November 10.

London analysts expect that stockpiles of distillates, which include heating fuel and diesel, will have fallen by 725,000 barrels. Demand for heating fuel hits a peak during the northern hemisphere's winter months.

Analysts' consensus forecasts are for US crude oil reserves to rise by 275,000 barrels, while gasoline or petrol is expected to drop by 100,000 barrels.

Crude futures dropped at the start of the week on forecasts of above-average temperatures this week in the northeast United States, the world's largest consumer of heating oil.

They have since recovered slightly, but analysts said the market was stuck in a tight range.

Gains were being limited by strengthening demand and falling supplies, according to Barclays Capital analyst Kevin Norrish.

“Prices remain confined to recent ranges capped by persistent bearish sentiment despite a fundamentals balance that appears to be tightening,” Norrish said.

“In the US in particular, the oil inventories overhang (surplus)... has eroded over the past four weeks, evidence that the market has tightened rapidly.” Prices were also being held back by market scepticism over Opec's recent output cut.

“Crude futures remain range-bound as investors continue to doubt Opec's promise to cut supplies across the board by 1.2 million barrels per day and with no significant fundamental news to trigger a substantial move in either direction,” said Sucden analyst Michael Davies.—AFP