Oil prices remained below $60 today as mild temperatures in the United States limited demand for heating fuel.
US crude edged 6 cents lower to $59.70 a barrel after hitting a three-month low yesterday and ending $1.46 down. London Brent crude was 10 cents lower at $58.00 a barrel.
Demand for heating oil in the US is expected to be about 30 per cent below normal this week as temperatures in warm up after an early chill, according to the US National Weather Service.
A slow start to winter in the US Northeast - the world's biggest heating oil market - would compound worries that historically high energy costs were cutting into demand.
In Japan, the world's third-largest oil consumer, where kerosene buying can soar for winter heating, the country's fourth biggest refiner - Cosmo Oil - revised down its planned November production due to weaker kerosene and industrial demand.
Analysts still worry that a freezing winter in the northern hemisphere would come at a difficult time for the US oil industry, with Gulf of Mexico refiners and producers struggling to restore operations after being battered by hurricanes.
Lost heating oil and gas output have led to concerns that Americans could run short of heating fuels in a winter cold snap.