Oil prices rose this evening as expectations that cold weather will boost heating fuel demand outweighed a US inventory report showing a rise in crude stockpiles.
US crude traded up 91 cents to $82.68 a barrel, after rising as high as $83.15 earlier. London Brent crude traded up 89 cents to $81.48.
Crude prices initially dipped after the weekly report by the US Energy Information Administration (EIA) showed a 1.3 million barrel increase in crude oil stockpiles. Stockpiles of distillates, including heating oil, fell by 300,000 barrels in the week to January 1, less than the 1.9 million barrels drop forecast by analysts.
Analysts said that expectations data from EIA next week would show a bigger fall, reflecting colder weather across much of the US, pushed up crude prices.
Arctic winds have pushed down into the Northern Hemisphere, freezing Europe and parts of Asia and boosting demand for heating fuel in the US some 21% above normal.
Elsewhere, icy weather descended on northern China over the last week, bringing heavy snow and record low temperatures to Beijing and causing cities across eastern and central parts of the country to begin rationing power.
