February 08, 2007	Thursday	Muharram 19, 1428

LONDON, Feb 7: World oil prices rose on Wednesday after news that US heating fuel and crude oil reserves sank last week during a cold snap across the US' northeastern region.

In London, the price of Brent North Sea crude for March delivery added 13 cents to $58.55 per barrel in electronic deals after earlier hitting a high of $59.46.

New York’s main oil futures contract, light sweet crude for delivery in March, gained 12 cents to $59.00 per barrel in floor trading after earlier peaking at 59.85 dollars.

“The big draw in distillates and surprise draw in crude makes this report somewhat bullish for prices,” Wachovia Corp. economist Jason Schenker said.

Crude oil reserves fell by 400,000 barrels in the week ending February 2 to 324.5 million barrels, the US Department of Energy said.

Analysts had expected crude inventories to rise by two million barrels over the week. However, the DoE said the levels “are above the upper end of the average range for this time of year.”

The report showed US distillate inventories, which include heating oil, tumbled 3.7 million barrels to 136.3 million. That was far more than the predicted decline of three million barrels.

But despite the biting cold being experienced by large swathes of the United States, the DoE said distillate levels also “remain above the upper end of the average range for this time of year.”

The report showed in addition that gasoline or petrol inventories rose by 2.6 million barrels last week to 227.2 million.

Oil prices had climbed on Tuesday, supported by tensions over Iran, lower Opec output and forecasts for colder US temperatures.

The US National Weather Service is forecasting below-average temperatures for the next six to 10 days in northeastern states, which is the biggest consumer of heating fuel in the world.—AFP