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Singapore - Crude rallied in Asian trade Wednesday as cold weather and bullish energy demand from China sent it to two-year highs, analysts said.
Brent North Sea crude for February delivery rose 15 cents to $93.35 per barrel in the afternoon after touching $93.49 in earlier trade - its highest level since October 2008.
New York's main contract, light sweet crude for delivery in February gained 12c to $89.94.
"Oil prices remain supported on cold weather and strong demand indications, with Chinese oil demand, along with gasoline, diesel and jet fuel demand, surging to record highs in November," Barclays Capital said in a report.
Icy weather across Europe and northeastern US states - which forecasters said would last until the end of the year - would lift crude prices as demand for heating oil increased.
Final Chinese oil consumption data for November released on Tuesday also showed the world's biggest energy consumers' use "at a record high of 9.33 million barrels a day (mdb)," the Barclays Capital report stated.
The level was "up a phenomenal 1.145 mbd (14%) year-on-year, the strongest year on year growth rate since February this year," it added.
"The fourth quarter has seen an acceleration of Chinese oil demand growth once again.
"To state that Chinese oil demand has surprised to the upside this year is a no-brainer, but we have a strong suspicion that upside surprises and the resultant global demand upgrades have not yet run their full course," the report said.
