Oil prices rose strongly today as markets geared up for the latest weekly snapshot of energy inventories in the US, the world's biggest consumer.
Brent North Sea crude for delivery in January jumped $1.05 to $73.10 a barrel in London trading. New York's main futures contract, light sweet crude for January, climbed 76 cents to $71.45 a barrel.
Analysts are forecasting the US Department of Energy to report a drop in distillate stockpiles later today. Data for distillates, which include heating oil, are being watched closely at the start of the northern hemisphere winter.
Demand for heating fuel traditionally peaks at this time of year but in the slow US recovery from recession, uptake for energy has declined.
The OPEC oil producers' cartel yesterday upgraded slightly its forecast for world oil demand growth next year but said usage in advanced economies would contract again.
The Organisation of Petroleum Exporting Countries said demand would grow by 0.82 million barrels per day (bpd) or 0.9% to average 85.13 million bpd, up slightly from its previous forecast for an increase of 0.75 million bpd.
