Oil prices climbed above $49 a barrel today on a late bout of cold winter weather in Europe and the United States.
US crude oil jumped 91 cents to $49.26 a barrel, the highest level since January 27th. Prices are up sharply from last year's average $41.48 a barrel, but off the contract's peak of $55.67 in October.
London's International Petroleum Exchange gained 48 cents to $47.21 a barrel after rising 39 cents yesterday, when the US market was shut for a holiday.
Cold weather on both sides of the Atlantic has helped stir late-winter demand for heating oil, giving impetus to prices since US inventories of the fuel are still quite low.
Europe is set to be colder than normal next week, while the US northeast is just emerging from an unseasonably chilly weekend, weather data show.
But conditions in both regions are expected to moderate soon, refocusing the market on stockpiles of US crude and gasoline, running 7-9 per cent above last year's levels.
The Organisation of the Petroleum Exporting Countries is keeping a close watch on global stockpiles to ensure that an overly large build does not send prices spiralling lower when demand eases after the northern winter.