World oil prices soared today as traders reacted to falling US heating fuel reserves and colder weather across the northern hemisphere.
Brent North Sea crude for delivery in January jumped $1.69 to $73.74 a barrel in London trading, after hitting a peak of $73.86. New York's main futures contract, light sweet crude for January, leapt $2.36 to $73.05 a barrel, having earlier touched $73.37.
The US Department of Energy said today that distillate stockpiles sank by a heavier-than-expected 2.9 million barrels last week in the US, which is the world's biggest energy consuming nation.
Data for distillates, which include heating oil, are being watched closely at the start of the northern hemisphere winter, during which demand for heating fuel traditionally hits a peak.
The DoE added that American crude oil reserves dived by 3.7 million barrels last week, which was also far larger than market expectations.
Meanwhile, the OPEC oil producers' cartel yesterday upgraded slightly its forecast for world oil demand growth next year but said usage in advanced economies would contract again.
The Organisation of Petroleum Exporting Countries said demand would grow by 0.82 million barrels per day (bpd) or 0.9% to average 85.13 million bpd, up slightly from its previous forecast for an increase of 0.75 million bpd.
