The price of oil rallied above 24 dollars a barrel early on Tuesday after snowfalls in the US Northeast had fuelled expectations of an increase of demand for crude.
Benchmark Brent North Sea crude for delivery in February climbed to 24.66 dollars a barrel in early trade, from 23.87 dollars at the close on Friday -- the previous trading day.
In New York, a barrel of reference light sweet crude for February delivery closed up 95 cents at 26.80 dollars on Friday.
"Friday's gains in crude have been added to overnight following the first snowstorm of the season in New York and New Jersey, which left between one and two feet of snow in the region," The GNI brokerage said in its daily research note.
"Temperatures are expected to be cold in (the) US Northeast today. Snow also hit the south of the US from New Mexico to Arkansas."
The latest blast of cold weather offset news that Iraq had resumed exports through the Turkish port of Ceyhan over the weekend.
The move was also overshadowed by calls from Saudi Arabia for an output cut by the Organization of Petroleum Exporting Countries (OPEC) -- the first time that the OPEC kingpin has spoken out in support of cuts.
"Saudi Arabia backs a production cut," a senior Saudi oil official said at a Gulf Cooperation Council summit in Manama on Sunday.
The reduction was expected to be "between 1.5 and two million barrels a day to maintain an appropriate oil price around 25 dollars a barrel," he told AFP.
Market watchers at the GNI brokerage said that the cold weather in much of the United States would likely "hold a positive sway over oil in the coming days and this positive tone will be added to by fears of OPEC tightening in the run up to the January 17 (OPEC) meeting" in Vienna -- LONDON (AFP)
© 2001 Al Bawaba (www.albawaba.com)
