Crude oil futures drifted higher today as sentiment remained anchored by supply unease heading deeper into the Northern Hemisphere winter.
With the seasonal rise in oil demand still ahead, and with one month before another meeting of the Organization of Petroleum Exporting Countries, prices are holding firm within striking distance of $60 a barrel.
Light sweet crude for December delivery was up 10 cents to $58.68 a barrel in mid-afternoon Asian electronic trading on the New York Mercantile Exchange. December Brent at London's ICE Futures exchange rose 17 cents to $59.22.
The International Energy Agency (IEA), in its monthly report last Friday, trimmed its outlook for 2006 global oil demand growth to 1.1 per cent from 1.2 per cent. Demand growth for 2007 held at 1.7 per cent.
But the energy body also forecast a 2.6 per cent jump in fourth-quarter global energy demand, citing high consumption in the United States. The agency noted US consumption was being compared with figures when the impact of Hurricane Katrina and mild weather curbed demand a year ago.
The IEA also said demand for oil from Opec was expected to rise 1.6 million barrels a day because of lower output from non-Opec countries.
The outlook points to tighter market conditions and higher prices just as Opec oil production cuts announced in late October are going into effect.