World oil prices were up slightly this evening on concerns that cold weather in the US would increase demand for heating fuel.
Prices rose despite Norway's leading oil company Statoil saying it was ready to resume production at its Snorre A platform in the North Sea after a 10-day halt due to safety problems, and concerns that the OPEC oil-producing cartel may fail to cut output as promised.
New York's main contract, light sweet crude for delivery in December, advanced 49 cents to $59.30 a barrel in pit trading. In London, Brent North Sea crude for December delivery gained 54 cents to $59.75 a barrel in electronic deals.
North-eastern parts of the US are experiencing colder than normal temperatures heading into the northern hemisphere winter, with the state of New York already having snow. The US north-east is the world's biggest consumer of heating fuel.
Traders are also gearing up for tomorrow's market update on the state of energy stockpiles in the US, which is the world's biggest consumer of energy.
World oil prices had begun lower earlier today as traders looked for further evidence from the Organisation of Petroleum Exporting Countries that the cartel would agree, as promised, to cut output by 1.2 million barrels a day from November 1.
Saudi Arabia, which is to shoulder nearly a third of the output cuts, has told its Asian customers it will slash their November deliveries by 8%. However, OPEC members Nigeria and Venezuela have yet to inform customers regarding the exact volume of their revised deliveries, raising market doubts about whether the cartel is united.
OPEC, which produces just over one third of the world's oil, last week decided to cut its output in a bid to support crude futures, which have sunk by more than 25% from record highs above $78 struck in July and August.
They have tumbled owing to buoyant US energy inventories, a largely uneventful Atlantic hurricane season and concerns over the impact of slowing US economic growth on crude demand.
