SYDNEY, Jan 22 Oil rose above $ 52 on Monday after falling temperatures in the U.S. North

SYDNEY, Jan 22 (Reuters) Oil rose above $52 on Monday after falling temperatures in the U.S. Northeast prompted investors to speculate that the colder weather would also sweep across Europe, boosting fuel demand and arresting a decline in oil prices.

U.S. crude rose 35 cents to $52.34 by 0154 GMT, extending Friday's gains that saw prices settling $1.41, or 3.4 percent, higher at $51.99.

London Brent was up 26 cents at $53.70.

''Weather is definitely playing a role in pushing up prices. The cold weather has increased demand in the U.S. and investors are looking for the cold snap to reach Europe as well,'' said Gerard Burg, an analyst at National Australia Bank.

Temperatures in the U.S. northeast were expected to average below normal for the next six-to-ten days, according to private forecaster DTN Meteorlogix.

Burg said the International Energy Agency's Thursday report which stated that oil supply from non-OPEC countries would be less than expected in 2007, would also have given the Organisation of Petroleum Exporting Countries (OPEC) more market power.

Oil prices have nosedived about 15 percent since the start of the year and are well down on the July record of $78.40 on fund selling and mild weather in the U.S.

After hovering marginally above the psychologically crucial $50 level for about a week, prices tumbled to $49.90 on Thursday after a government report showed U.S. crude stocks had swelled by 6.8 million barrels.

Analysts said comments from OPEC members Algeria and Libya on Sunday that oil prices should rise when the cartel fully implements its output reduction by February, have also given some support to prices.

Algeria's Energy and Mines Minister Chakib Khelil told a state radio that the OPEC would not hold an emergency meeting to implement further output cuts because of opposition from Saudi Arabia to the move.

''The (existing) reduction of almost 1.7 million barrels, if they are actually carried out and discipline is maintained, ought to see prices a lot more supported and a lot higher than we see at the moment,'' Khelil said.

Libya's top oil official Shokri Ghanem said OPEC members were seeking full compliance with existing output cutbacks to stem the slide in oil prices, but would call for an extraordinary meeting to shore up sagging prices if that fails.

OPEC is next scheduled to meet on March 15 in Vienna.

An OPEC monthly report on Friday said 10 members involved in output curbs had pumped 26.785 million barrels per day (bpd) in December, 111,000 bpd less than November, but still above a 26.3 million bpd target.

OPEC has trimmed production twice since November in an attempt to curb the steady fall in oil prices.

The cartel first pledged to implement a 1.2 million barrel cut from Nov. 1 and later increased it to a 1.7 million cut from Feb. 1.

Reuters MQA DB0804