Fin24

Oil up amid cold winter spell

2010-12-30 10:24

Singapore - Oil rose in afternoon Asian trade on Thursday on expectations that freezing temperatures in the northern hemisphere will stoke demand, analysts said.

New York's main contract, light sweet crude for February delivery, rose 20 cents to $91.32 per barrel in the afternoon.

Brent North Sea crude for February was up 16 cents at $94.30.

"The prices are related to weather... as well as inventories," said Jason Feer, Asia-Pacific vice president and general manager for Argus Media energy market analysts in Singapore.

The Organisation of the Petroleum Exporting Countries (Opec) has not made "much imminent concerted effort to bring down prices", he added.

Opec produces 40% of the world's crude and its actions have a heavy influence on oil futures movements.

Crude prices have been boosted by the extreme cold weather and blizzards across the northern hemisphere, with households seen using more heating oil.