LONDON, Jan 12: IPE Brent crude oil reversed mid-session losses on Monday, regaining positive ground as traders fretted over cold weather and US crude inventories.

Prices remain supported near post-Iraq war highs by forecasts of cold snaps in the United States which could add to pressure on tight oil stocks but dealers said the potential for significant further weather-related gains was limited.

At 1719 GMT, February Brent futures were 18 cents higher at $31.55 a barrel, still a little way off an early morning peak of $31.69 but largely recovered from a mid-session slide that took the contract down to a day low of $30.88. On Friday, it forged a new nine-month high of $31.80 a barrel.

"The market is still technically strong, the funds are still very long, and it needs to see some definite recovery in the crude stocks before the market comes off," said one trader.

Cold weather has combined with the low US crude stocks - currently at their lowest since 1975 - to bolster the energy market in recent weeks. Consumers in the US Northeast, the world's heavyweight heating oil-consuming region, are likely to further deplete stocks with a forecast for temperatures 15-20 degrees Fahrenheit below normal for Wednesday to Friday.

Traders will now watch out for US government data due on Wednesday for fresh indications of the impact of cold weather on heating oil and crude inventory levels.

Earlier, a pre-expiry gas oil drop knocked the crude market into negative from a strong opening, with front month January expiring down $7 a ton at $286.75 at 1200 GMT. January had set a new 10-month high at $294.50 on Friday.-Reuters