New York, Oct 11: Oil prices surged to a two-month peak yesterday on a combination of fund buying and concerns about supplies of heating fuel ahead of the looming northern hemisphere winter. New York's benchmark light sweet crude November contract gained 96 cents to USD 31.97 per barrel in afternoon trade. The price of reference brent North Sea crude oil for November delivery rose 43 cents to 30.57 dollars per barrel in late deals. Analysts said weather forecasts have been showing increasingly colder outlooks for the coming season, prompting fears about tight supplies. "There is a perception of a shortage in heating oil," said analyst Mike Fitzpatrick at Fimat.

Analysts said some institutional investors were buying oil contracts ahead of the Columbus Day holiday in the United States.

Fitzpatrick said he expects to see "people actively selling" after the holiday, possibly bringing prices down.

Bureau Report