Oil prices held below $60 today after two sessions of deep losses as mild weather dampened demand across the Northern Hemisphere.
US light crude oil ended up 23 cents to $59.70 a barrel, after dropping to a three-month low yesterday of $58.60 a barrel.
London Brent crude fell 23 cents to $57.81.
US demand for heating oil was expected to be about 42 per cent below normal this week as temperatures remained mild in the US Northeast, the world's largest oil consuming region, the US National Weather Service said.
In Japan, the world's third-largest oil consumer, where heating demand can soar in winter months, the weather was set to remain normal or warmer than normal the next two weeks.
US crude prices hit a record of $70.85 at the end of August, but have since fallen by more than $11 as the US oil industry recovers from hurricane damage and warm weather further boosts oil inventories.