NEW YORK : World oil prices rose on Wednesday following a surprise report showing that US stockpiles of heating fuel tumbled last week while crude oil inventories increased, dealers said.

The market was also supported by oil exporting cartel OPEC, which raised its forecast for oil demand this year.

New York''s main contract, light sweet crude for delivery in December, gained 48 cents to close at 58.76 dollars a barrel.

In London, Brent North Sea crude for December delivery added 62 cents to settle at 59.46 dollars a barrel. The contract expired at the close of trading.

The US Department of Energy said Wednesday that US reserves of crude oil rose by 1.3 million barrels to 336.0 million in the week that ended November 10, roughly in line with analysts'' forecasts.

But levels of distillate products, such as heating oil and diesel fuel, dived 3.6 million barrels to 135.0 million over the week.

That was far more than the expected fall of 500,000 barrels and came as demand for heating oil goes up in the United States heading into the northern hemisphere''s winter months.

Refineries slowed their operations last week owing to ongoing maintenance season, AG Edwards analyst Bill O''Grady noted.

"The week''s data, on balance, was bullish as the decrease in (refinery) runs led to a larger-than-expected build in crude, but the draws in the products were greater than anticipated," he said.

US gasoline reserves were also down heavily, falling 3.7 million barrels to 200.3 million, against forecasts for a decline of just 100,000 barrels.

"The market was driven today by a surprising drop in products. Strong demand seems to suggest that the US economy is still strong and resilient, and that should keep demand for oil high," Phil Flynn at Alaron Trading said.

Crude futures dropped at the start of the week on forecasts of above-average temperatures this week in the northeast United States, the world''s largest consumer of heating oil.

They have since recovered slightly, but analysts said the market was stuck in a tight range. Prices have also been held back by market scepticism over OPEC''s recent output cut.

The Organisation of the Petroleum Exporting Countries on Wednesday increased its estimate of worldwide demand for oil in 2006, which was now expected to average 84.3 million barrels per day (bpd).

The estimate was an upward revision of 100,000 bpd from the cartel''s previous forecast.

Demand in 2006 was expected to be 1.0 million bpd or 1.2 percent higher on average than in 2005.

In 2007, demand was expected "to grow at a moderate rate of 1.3 million bpd or 1.6 percent," OPEC said.

The forecast and comments by the cartel, contained in its monthly report, came amid speculation about whether the 11-member group would further reduce its output quota at its next meeting in December.

OPEC had decided last month to slash output by 1.2 million bpd to 26.3 million bpd effective from the start of November.

The group is due to hold its next regular meeting on December 14 in the Nigerian capital Abuja. - AFP/de