LONDON, Nov 16: World oil prices rose further on Thursday as traders digested falling heating fuel stocks and forecasts of colder weather in major consumer the United States, dealers said.

New York's main contract, light sweet crude for delivery in December, gained 24 cents to $59 per barrel in electronic deals before the official opening of the US market.

In London, Brent North Sea crude for January delivery added 30 cents to $60.91 per barrel in electronic trading. The December contract had expired at $59.46 on Wednesday.

The US Department of Energy had said on Wednesday that levels of distillate products including heating oil and diesel fuel dived 3.6 million barrels to 135 million barrels in the week ended November 10.

That was more than seven times market expectations of a fall of 500,000 barrels. However, stocks of US distillates remain about six per cent above year-ago levels.

US gasoline reserves were also down heavily, falling 3.7 million barrels to 200.3 million, against forecasts for a decline of just 100,000 barrels.

“Whilst stocks are still reasonably healthy, the rate of decline over the last month is concerning,” said Sucden analyst Michael Davies.

“Overall the market failed to make a lot of progress higher on these numbers though and appears range bound from around $59-63 for Brent and from $57-62 for light sweet crude.” ”However the upside risks remain high, with the potential for a cold snap highlighted by forecasts for colder weather ahead.” US weather forecaster Accu Weather predict that the US north-eastern region -- the world's most voracious consumer of energy -- would experience slightly colder than normal temperatures this year.

Demand for heating fuel traditionally rockets during the northern hemisphere winter and puts crude oil prices under strain.

Added to the picture, many Americans take to their cars for the Thanksgiving holiday next week on Thursday November 23, when analysts predict that demand for gasoline or petrol will jump higher.

Traders are also mindful that the recent Opec output cut could filter down into global stockpiles in the coming weeks.

“There is the possibility that a pledged 1.2 million bpd (barrels per day) output cut by Opec will start to impact inventories,” Davies added.

“It is probably quite likely that Opec is relatively happy that prices have held up around the $60 a barrel level.” —AFP