Oil prices held above $46 a barrel today amid freezing weather in the United States and renewed threats by Muslim militants to attack oil facilities in the Middle East.
US light crude for January delivery, which expires at the end of business in New York today, dipped 23 cents to $46.05 a barrel. The February contract fell 19 cents to $46.38.
London's Brent crude fell 29 cents to $43.10 a barrel. Oil rallied more than $5.50 a barrel last week, and is now less than $10 below the all-time high at $55.67 from late October, after an abrupt turn to wintry weather in the US Northeast, home to about 78 per cent of American heating oil consumers.
A rise in demand threatens to drain already thin stockpiles of heating fuels, which are running nearly 13 per cent below year-ago levels.
"If there's more cold weather, prices could click another dollar or two higher. Distillate demand numbers are pretty strong and people are worried by stocks," said Mr David Thurtell at Commonwealth Bank of Australia in Sydney.
But dealers also are edgy on new security threats against oil infrastructure in the Middle East, which holds almost two-thirds of global proven reserves and accounts for almost 30 percent of global supplies.
An Internet statement at the weekend, purportedly from the Saudi wing of al-Qaeda, urged militants to attack oil facilities in the world's biggest exporter.