WINTER chills sent oil prices surging again yesterday as European buyers rushed to cover seasonal demand amid sub zero temperatures. London February futures for bellwether North Sea Brent Blend rose 44 cents to $23.86 a barrel, helped by renewed demand for heating oil in northern Europe in particular.

"I'm sure that gas oil [heating oils has fuelled the move higher today with the severe winter weather we're seeing across the continent," said analyst, Mr Tim Holmes at brokerage Mees Pierson Derivatives. January gas oil futures in London rose $5.25 a tonne to $222.25.

Most of Europe spent Christmas gripped by freezing conditions which stretched as far south as the Mediterranean island of Corsica.