SEOUL, Feb 8 Oil prices edged up on Thursday after fuel stocks in the United States were

SEOUL, Feb 8 (Reuters) Oil prices edged up on Thursday after fuel stocks in the United States were cut by freezing weather and as buying interest reemerged after a 2 percent sell-off the previous day.

U.S. crude oil futures gained 15 cents to $57.86 a barrel by 0337 GMT, after prices ended $1.17 lower on Wednesday.

London Brent crude was up 27 cents to $57.50.

Analysts say the drop in inventory levels was not significant enough to push up oil prices beyond the $60 level, leading to profit-taking after a nearly 20 percent climb since mid-January.

The market was still supported by cold weather in the major heating oil consuming regions of the U.S. Midwest and Northeast, which cut distillate fuel stocks by 3.7 million barrels last week, the biggest distillate decline since October.

''The drop was larger-than-expected but it wasn't enough to move up prices as there is a psychological resistance against the $60-level,'' said J.J. Kim, analyst at Korea Investment and Securities.

Oil prices have rebounded from a dip below $50 in mid-January as unusually warm winter weather turned into a cold spell hitting the key heating oil markets in the world's top oil consumer.

U.S. crude supplies fell by 400,000 barrels, compared to a forecast rise of 1.4 million barrels, while gasoline supplies rose by an unexpected 2.6 million barrels, the data showed.

Inventories could continue to fall due to frigid weather that is expected to last until next week.

Analysts said OPEC, which has pledged to trim another 500,000 barrels per day (bpd) of output from February to add to a 1.2 million bpd cut from November, and lower-than-expected new supplies from non-OPEC producers will also support the market.

''The cuts, although short from their aim, will definitely hike up prices with cold weather continuing to hit the U.S.

next week. Inventories may turn insufficient from the current sufficient level,'' Kim added.

Non-OPEC producer Mexico's state oil firm Pemex confirmed a gloomier forecast on Wednesday for fast-declining oil output at its ageing Cantarell field, for an average of 1.526 million bpd during 2007, down 15 percent from last year.

REUTERS CS VV1145