Singapore: Oil rose over 3 percent to around $39 a barrel on Wednesday, as OPEC kept up its talk of production cuts and a cold snap in the United States boosted heating oil demand.Top exporter Saudi Arabia on Tuesday said it was prepared to go even further than cuts it had made since December if the market warranted it, while OPEC's secretary general said the cartel may reduce oil output again at its meeting in March. But analysts said downside risks remain high. A U.S. government report due later in the day is expected to show crude oil stocks rising for the third consecutive week, by over 2 million barrels.
U.S. light crude for February delivery rose from $1.21 to $38.99 a barrel after closing 19 cents higher at $37.78 on Tuesday. London Brent crude gained 30 cents to $45.13. "Oil was boosted by U.S. weather and Saudi Arabia's comments in the previous session but the trend is still down, with lower energy demand in focus," said Michelle Kwek, an analyst at Informa Global Markets in Singapore.
U.S. crude oil stocks have swelled as demand in the top oil consumer wilts, pushing U.S. crude futures into a deep discount compared with Brent crude.
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