LONDON, Nov 18: World oil prices steadied on Friday, after hitting five-month low points overnight in New York, while traders digested Opec’s forecast rise in demand growth this year, especially from energy-hungry China.

Investors were also monitoring US energy stocks and changing weather patterns across the northern hemisphere ahead of winter.

New York’s main contract, light sweet crude for delivery in December, dipped nine cents to $56.25 per barrel in pit dealing.

On Thursday, the contract had dived $1.55 to close at $56.34, the lowest finish since June 15, with US crude stockpiles deemed sufficient to meet winter demand.

In London on Friday, the price of Brent North Sea crude for January delivery eased also by nine cents to $54.76 per barrel in electronic trading.

“The arrival of cooler weather in parts of Europe and the US, stronger US weekly oil data and a pick-up in Chinese demand indications all suggest that the downtrend in crude oil prices may now be coming to an end,” said Barclays Capital analyst Kevin Norrish.

“The market probably needs a burst of much colder weather to jolt it out of its current bearish mood.”

Recent mild weather in the northern hemisphere, which has since begun to turn colder, has granted refiners time to build stocks.

However, demand for crucial heating fuel is forecast to soar when winter proper kicks in.

Opec had forecast on Wednesday that global demand would increase by 1.2 million barrels per day this year, downplaying the idea that recent prices had resulted in “demand destruction”, whereby higher costs erode demand.

The Organization of Petroleum Exporting Countries said in its November report: “Following six consecutive monthly downward revisions, world oil demand has shown signs of recovery in the last couple of months.

Oil prices had risen in New York after data Wednesday from the US Department of Energy showed the first drop in crude stocks in six weeks, falling by 2.2 million barrels for the week to November 11.—AFP