The price of oil fell slightly but remained above $102 on Friday, underpinned by U.S. demand for heating oil during a winter that does not seem to want to end.
Benchmark U.S. crude for April delivery fell 55 cents to close at $102.20 a barrel on the New York Mercantile Exchange. On Thursday, the contract fell 9 cents to close at $102.75.
Oil is up 2 percent for the week, however, on higher demand for heating oil in the U.S. as forecasters predicted a return of more cold weather in the coming weeks after a brief warm spell.
"Market players are now looking at weather conditions in the U.S., it's quite cold and heating oil demand is getting tighter so that is supporting the crude oil prices," said Tetsu Emori, commodity markets fund manager at ASTMAZ Futures Co. in Tokyo.
Analysts said the recent rising trend in oil prices, which climbed for the sixth week in a row, could be about to reverse, however, because of tempering global demand and ample supplies.
A report on manufacturing activity in China released Wednesday suggested global economic growth could weaken, which would reduce demand for gasoline, diesel and jet fuel.
Also, supplies appear to be relatively strong in the U.S., despite the higher demand, according to this week's oil report from the U.S. Energy Department.
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