Oil bounced back above $59 today on expectations the coldest weather of the US winter would cut heating oil stocks in the world's top energy consumer.
US crude oil was up 69 cents at $59.43 a barrel by 10.21am. It had eased 28 cents today after Nigerian unions called off a strike in the world's eighth-largest exporter.
London Brent crude gained 65 cents to $58.75.
The onset of cold weather in the US Northeast, the world's biggest heating oil market, and a shift in investment flows has lifted oil from a 20-month low of $49.90 on January 18th and brought it into the $60 danger zone for consumer nations' economies.
Last time oil reached these levels, in 2006, consumer nations led by the United States called on Opec to increase oil supplies. Opec obliged, and prices fell back sharply.
US forecasters expect temperatures to remain below normal for the next six to 10 days. The National Weather Service said heating demand in the United States was expected to be about 20 per cent above normal.