Oil prices hovered near recent highs above $51 a barrel today amid expectations of continuing cold weather in the United States that should boost demand for thinning heating oil inventories.
US crude oil rose 28 cents to $51.45 a barrel, holding near yesterday's near four-month high of $51.60 ahead of US weekly inventory data. Brent crude on the International Petroleum Exchange gained 17 cents to $48.68 a barrel.
Prices have soared by about $6 in the past two weeks, fuelled by tightening global oil market forecasts this year, fears of an OPEC production cut and colder northern-hemisphere weather.
US heating oil futures also surged, with the March contract up 19 points at $1.4850 having hit a new three-month high of $1.4880 a gallon.
The market will now look toward US inventory data published this afternoon for direction.
Heating oil supplies are running 9 per cent below year-ago levels, and dealers fear persistent cold weather in the US northeast could strain supplies.
Yet with high prices, OPEC officials have changed their focus from a possible production cut - meant to head off an overly large second-quarter stockbuild - to potentially raising output to cool prices within sight of last year's all-time high of $55.67.