US crude was trading 16 cents higher at US$62,59 at 0736 GMT.

London's Brent crude rose 15 cents to US$63,47.

Analysts polled by Reuters expected US government data yesterday to show a 500 000-barrel decline in distillate stocks, which include heating fuel, following higher demand after a major snowstorm hit the northeast US over the weekend.

Crude inventories were expected to rise by a slim volume as imports rebounded, keeping them at or near their highest level for the time of year since 1991.

The US National Weather Service forecast higher than usual temperatures by the weekend in the US Northeast, the top heating oil market.

The mild weather could last for two weeks.

For now, oil prices have yet to convincingly leave behind the trading rut of US$58-US$64 a barrel established since mid-September, despite signs that OPEC is inclined to cut output again.

Nampa-Reuters

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