Oil prices are up on predictions of cold weather in the Northern Hemisphere. The growing demand for the distillates in the US Northeast where about half of the nation’s heating oil users live continues to drag the prices up.

Light crude oil rose 11 cents, to $41.12.

The US National Weather Service warning of lower-than-normal temperatures in Boston and New York in the next week had an effect on the oil futures that dropped after the OPEC announced its commitment to the previously announced quotas.

Joel Burgio, a meteorologist with Meteorlogix LLC said yesterday. ``On Wednesday we should see the lowest temperatures of the season so far. Temperatures will then moderate, but there are some indications that we may turn colder next week.’’

``The cold weather in the Northeast U.S. is moving up prices,’’ said Akira Kamiyama, an oil trader at Mitsui & Co. in Tokyo. ``If this type of weather in the Northern Hemisphere continues, then we are in for a bigger rally.’’
Crude oil for January delivery was up 19 cents to $41.20 a barrel in after-hours trading on the NYMEX.

``Once the cold weather arrives you see the prices rise --it happens every year,’’ said Tom Bentz, an oil broker at BNP Paribas Commodity Futures Inc. in New York. ``There are also the Iraqi problems and signs that the Saudis are perhaps instituting production cuts.’’

Saudi Arabia, the world’s largest oil producer, made the first reduction in shipments to Asia in nine months, lowering its shipments to Asian customers by 8%.