NEW YORK, Nov 24 (AFP) - Oil prices pushed higher Wednesday, stoked by nagging concerns that US heating oil stocks could face a supply crunch in coming weeks, as traders sought to cover positions before the Thanksgiving holiday here.
Light, sweet crude oil for January delivery on the New York Mercantile Exchange (Nymex) closed up 50 cents at 49.44 dollars a barrel Wednesday from Tuesday.
New York oil traded as high as 49.60 dollars in Wednesday trading, but failed to broach the 50 dollar mark struck Tuesday.
In London, Brent North Sea crude oil for January delivery closed higher 37 cents at 44.82 dollars.
Traders said many market participants had bought up positions not wishing to leave themselves exposed over the next few days and over the weekend as the US market is now shuttered until Monday due to Thursday`s national Thanksgiving holiday.
"Nobody wants to go on a long weekend and to be short in case something happens," explained Marshall Steeves, an analyst at Refco.
Earlier, the US Department of Energy reported that distillate stockpiles, including crucial heating oil inventories, rose one million barrels to 115.6 million in the week ending November 19, breaking a nine-week losing streak.
The American Petroleum Institute, a private trade association, reported an even larger build of 1.82 million barrels to 117.6 million.
On crude oil stockpiles, the US government data showed a rise of 100,000 barrels to 292.4 million barrels, but the API reported a decline of 1.22 million barrels to 293.22 million.
Both reported small falls in heating oil stocks: 200,000 to 48.9 million according to the Department of Energy and 134,000 to 50.61 million according to the API.
US heating oil stocks, which are about 16 percent lower than a year ago, continue to cause concerns over a possible supply crunch should the northern hemisphere winter turn out to be colder than expected.
Oil prices in New York and London had initially dropped in the wake of the stock reports, but rebounded into the close ahead of the extended break.
Steeves said price pressure could be to the downside when the market returns Monday.
"I think the pressure will still be lower next week especially with the inventories numbers," he said.
Oil prices have fallen by about 16 percent in New York from all-time highs seen last month, but remain up 44 percent so far this year.
Analysts said prices are also drawing support from expectations that the OPEC cartel will soon reduce its output, after increasing production to close to full capacity in recent months in response to record-high prices.
Organization of Petroleum Exporting Countries ministers are due to meet next in Cairo on December 10.
11/24/2004 21:41 GMT - AFP