US light crude for January rose 6 cents $58.90, adding to Tuesday's 2 per cent gain. London Brent crude traded up 9 cents at $56.50.

Analysts expected weekly US government data to show a rise of 800,000 barrels in distillate fuels, including heating oil, which would only be the second rise in nine weeks, leaving traders still concerned about demand for heating fuels ahead of the US Thanksgiving holiday on Thursday.

"It's because of short covering before the holiday and the cold snap, pushing prices back up," said Sydney-based David Thurtell of the Commonwealth Bank of Australia.

Temperatures in the US northeast, home to 8 percent of the country's heating fuel consumption, were predicted to stay well below normal levels with snow expected over the next five days, private forecaster meteorlogix said.

The chilly weather could eat away healthier heating oil stocks, which last stood nearly 8 percent above a year ago.

Oil prices in New York have risen nearly 5 per cent this week after dropping to a five-month low on Friday, but remain around $12 down from their end-August peak over $70 on worries high prices and a mild early winter were cutting into demand.