US crude oil futures held firm at $61 a barrel on Friday after surging over 2 percent a day ago, supported by an unexpectedly steep fall in US fuel stocks and the risk of further supply cuts from Opec.
US light, sweet crude for December eased 13 cents to $61.03 a barrel, with activity muted ahead of the International Energy Agency's monthly report, which will give an update on how prices are affecting global demand.
London Brent crude fell 12 cents to $61.20 a barrel. Prices rallied to their highest in two weeks on Thursday, extending gains after US weekly data showed a 2.7 million barrels fall in distillate stocks, stirring concerns over heating fuel supplies as the northern hemisphere heads into winter.
Government and private forecasters project the US Northeast, the biggest heating oil consuming region, will have either normal or colder than normal weather into January.
The market also drew support after Saudi Arabia and other Gulf Opec members said this week they see scope for further supply cuts when the producer group next meets on December 14. Gulf members of Opec said on Wednesday they were fully committed to the 1.2 million barrels per day cut agreed from November, but said markets remained oversupplied for now. With little else to focus on, dealers were looking ahead to the IEA's monthly oil market report due later on Friday.
"If the 2007 global oil demand growth is revised up, prices may jump," said Tetsu Emori, chief strategist at Mitsui Bussan Futures Ltd in Tokyo. The Paris-based agency last month trimmed its 2007 global oil demand growth forecast by 90,000 barrels per day to 1.45 million bpd because of slightly weaker US demand.
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