Crude oil prices edge towards $59 a barrel

Oil prices edged towards $59 today, bolstered by a larger-than-expected drop in US heating oil stocks and lost Nigerian output…

Oil prices edged towards $59 today, bolstered by a larger-than-expected drop in US heating oil stocks and lost Nigerian output following a dynamite attack on a pipeline.

US February light crude was up 14 cents at $58.70 a barrel by 7.05am Irish time, building on yesterday's gain of 47 cents in New York.

London Brent crude was 20 cents higher at $56.92, extending a 55-cent rise the previous day.

Analysts still expect already-high US crude inventories to build further but oil products to be in short supply, particularly due to a global shortage of refining capacity. US refineries are expected to shut down for heavy maintenance early next year after the government asked oil companies to defer scheduled autumn work to make up for supplies disrupted by an unusually active hurricane season.