Oil flat above $60

LONDON, Nov 28 (Reuters) Oil was steady above $60 a barrel on Tuesday after rising more than $1 the previous session, partly on forecasts of a cold spell in the U.S. Northeast, the world's biggest heating oil market.

U.S. crude was down three cents at $60.29 a barrel by 0929. London Brent crude was up seven cents to $60.51.

''We still expect oil prices to remain in a mid-fifties to low-sixties band for now,'' Tobin Gorey, commodity strategist at Commonwealth Bank of Australia, said.

''Sustained colder weather is the most likely reason for it to break through the high side.'' Private forecaster AccuWeather said on Monday cold weather would sweep into the U.S. East Coast by the weekend, ending a stretch of above-normal temperatures that has curbed demand.

Heating oil led prices higher on Monday.

Oil has been stuck in a two-month trading rut of $58-$62 a barrel, showing few signs of resuming a climb back toward a record high of $78.40 a barrel hit in mid-July.

The National Weather Service said on Monday U.S. heating demand this week would be about 24 percent below normal.

The world's second biggest energy consumer, China, will see broadly average temperatures in December, forecasters said.

China's top energy official said on Tuesday China aimed to fill its strategic reserves during price dips. Pent up Chinese demand to build these reserves is helping to underpin prices.

''When international oil prices come down, we will store some (oil),'' Chen Deming, vice chairman of the energy policy-setting National Development and Reform Commission said.

A weaker U.S. dollar, near a 20-month low against the euro, could provide China with an opportunity.

The market is also looking ahead to an OPEC meeting on Dec.

14 that could result in a further output cut. OPEC agreed at an emergency meeting in October to remove 1.2 million barrels per day from oversupplied markets.

REUTERS DKS DS1510