Oil edges higher, warm weather weighs

LONDON, Jan 4 (Reuters) Oil crept higher on Thursday after a more than LONDON, Jan 4 (Reuters) Oil crept higher on Thursday after a more than $2 sell-off the previous session as warm weather sapped demand for heating oil and ahead of U.S. inventory data expected to showing rising fuel stocks.

U.S. light crude traded 20 cents higher at $58.52 a barrel by 1011 GMT. It settled $2.73 lower at $58.32 on Wednesday, the lowest settlement since Nov. 17.

London Brent rose 31 cents to $58.27.

Unseasonably warm weather in the U.S. Northeast, the top regional heating oil consumer, has dragged prices lower since late December.

Demand for heating oil in the week to Jan. 6 would be about 33 percent below normal, the National Weather Service has said.

The below-normal consumption was expected to have helped to boost U.S. distillate inventories, including heating oil, by 900,000 barrels, according to a Reuters survey of analysts.

Gasoline was also seen rising by 1.5 million barrels, while crude stocks were expected to decline by 800,000 barrels.

The U.S. government data will be released at 1530 GMT on Thursday, a day later than usual because of Monday's public holiday.

Wednesday's sharp price fall on the first full trading day of the year was mirrored across the commodities complex, prompting expectations of waning investor interest in the sector.

Copper, which led the way lower on Wednesday, was hovering near a nine-month low on Thursday.

''The global macro outlook is not so bullish for commodities any more,'' said Frederic Lasserre of SG CIB Commodities. ''Supply is expected to rebound in 2007 at least for the key commodities ...

when demand is slowing down.'' U.S. crude ended 2006 only one cent higher than at the end of December 2005, although its average of $66.22 over 2006 was nearly $10 higher than that for 2005.

The Reuters/Jefferies CRB Index, which measures prices of 19 commodity futures, fell 2.80 percent to 298.49, the lowest since October.

REUTERS CS GC1602 sell-off the previous session as warm weather sapped demand for heating oil and ahead of U.S. inventory data expected to showing rising fuel stocks.

U.S. light crude traded 20 cents higher at .52 a barrel by 1011 GMT. It settled LONDON, Jan 4 (Reuters) Oil crept higher on Thursday after a more than $2 sell-off the previous session as warm weather sapped demand for heating oil and ahead of U.S. inventory data expected to showing rising fuel stocks.

U.S. light crude traded 20 cents higher at $58.52 a barrel by 1011 GMT. It settled $2.73 lower at $58.32 on Wednesday, the lowest settlement since Nov. 17.

London Brent rose 31 cents to $58.27.

Unseasonably warm weather in the U.S. Northeast, the top regional heating oil consumer, has dragged prices lower since late December.

Demand for heating oil in the week to Jan. 6 would be about 33 percent below normal, the National Weather Service has said.

The below-normal consumption was expected to have helped to boost U.S. distillate inventories, including heating oil, by 900,000 barrels, according to a Reuters survey of analysts.

Gasoline was also seen rising by 1.5 million barrels, while crude stocks were expected to decline by 800,000 barrels.

The U.S. government data will be released at 1530 GMT on Thursday, a day later than usual because of Monday's public holiday.

Wednesday's sharp price fall on the first full trading day of the year was mirrored across the commodities complex, prompting expectations of waning investor interest in the sector.

Copper, which led the way lower on Wednesday, was hovering near a nine-month low on Thursday.

''The global macro outlook is not so bullish for commodities any more,'' said Frederic Lasserre of SG CIB Commodities. ''Supply is expected to rebound in 2007 at least for the key commodities ...

when demand is slowing down.'' U.S. crude ended 2006 only one cent higher than at the end of December 2005, although its average of $66.22 over 2006 was nearly $10 higher than that for 2005.

The Reuters/Jefferies CRB Index, which measures prices of 19 commodity futures, fell 2.80 percent to 298.49, the lowest since October.

REUTERS CS GC1602 .73 lower at .32 on Wednesday, the lowest settlement since Nov. 17.

London Brent rose 31 cents to .27.

Unseasonably warm weather in the U.S. Northeast, the top regional heating oil consumer, has dragged prices lower since late December.

Demand for heating oil in the week to Jan. 6 would be about 33 percent below normal, the National Weather Service has said.

The below-normal consumption was expected to have helped to boost U.S. distillate inventories, including heating oil, by 900,000 barrels, according to a Reuters survey of analysts.

Gasoline was also seen rising by 1.5 million barrels, while crude stocks were expected to decline by 800,000 barrels.

The U.S. government data will be released at 1530 GMT on Thursday, a day later than usual because of Monday's public holiday.

Wednesday's sharp price fall on the first full trading day of the year was mirrored across the commodities complex, prompting expectations of waning investor interest in the sector.

Copper, which led the way lower on Wednesday, was hovering near a nine-month low on Thursday.

''The global macro outlook is not so bullish for commodities any more,'' said Frederic Lasserre of SG CIB Commodities. ''Supply is expected to rebound in 2007 at least for the key commodities ...

when demand is slowing down.'' U.S. crude ended 2006 only one cent higher than at the end of December 2005, although its average of .22 over 2006 was nearly higher than that for 2005.

The Reuters/Jefferies CRB Index, which measures prices of 19 commodity futures, fell 2.80 percent to 298.49, the lowest since October.

REUTERS CS GC1602