NEW YORK, Jan 27: World oil prices rose strongly on Friday, as traders predicted an expected rise in demand for heating fuels in the United States amid a recent cold snap. New York's main oil futures contract, light sweet crude for delivery in March, leapt $1.19 to close at $55.42 per barrel.

In London, the price of Brent North Sea crude for March delivery jumped $1.17 to settle at $55.29 per barrel.

The key development this week has been the growing evidence that market sentiment is turning more positive, said Barclays Capital analyst Kevin Norrish.

Colder weather conditions and the decision to double the size of the US Strategic Petroleum Reserve were the two key factors in moving sentiment. Prices also found support from robust oil demand growth, Opec production cuts and simmering global geopolitical tensions, he added.

Crude futures had skidded beneath 55 dollars on Thursday as traders concentrated on news that US energy reserves had risen across the board last week.

Healthy US energy stocks put a lid on prices, following an increase due to the cold snap and US President George W. Bush's announcement on Tuesday that the United States would double its strategic oil reserve.

The US National Weather Service, meanwhile, forecast below normal temperatures continuing in the country's northeastern region -- the world's largest heating fuel market -- for roughly the next two weeks.

American stockpiles of distillate products, such as heating oil and diesel fuel, increased 700,000 barrels to 142.6 million in the week ended January 19, the US Department of Energy (DoE) had said on Wednesday. That confounded market expectations for a drop of 250,000 barrels.

Although US energy inventories remain ample, many analysts expect increased demand for heating oil, amid recent freezing weather, will hurt stockpile levels.

It is worth noting that the effect of the recent cold snap may not be seen until the figures for this week, released next week, said Sucden analyst Michael Davies.—AFP