* Oil boosted by cold weather, OPEC cuts
* US weekly crude stocks seen rising for fifth week
(Recasts, adds analyst quotes, updates prices)
By Jane Merriman
LONDON, Jan 27 (Reuters) - Oil prices rose above $46 a
barrel on Tuesday, boosted partly by cold weather in top energy
consumer the United States, plus signs OPEC oil supply cuts may
have begun to underpin prices.
U.S. light, sweet crude for March delivery <CLc1> rose 56
cents to $46.29 a barrel by 1140 GMT. It touched a session high
of $47.49 a barrel.
U.S. crude has rebounded from below $33 a barrel in the past
week.
London Brent crude <LCOc1> climbed 43 cents to $47.39 a
barrel.
The U.S. cold snap has helped prices move up from lows
earlier in January of $32.7 a barrel, but analysts say the
recovery may be temporary.
"Unless OPEC production cuts in January were substantially
greater than what we have assumed, it is still too early to be
calling an end to this current bear market," Goldman Sachs said
in a research note.
Oil's supply/demand picture remains weak, Goldman said,
pointing to a large counter-seasonal stock build in the United
States and extremely weak demand in China, the world's second
largest energy consumer.
Oil has dropped more than $100 from a record peak above $147
a barrel in July last year, depressed by falls in demand as the
credit crisis has pushed the global economy towards recession.
Goldman said retail investors were moving into oil,
attracted by its low price, so that speculative positions or
"length" in the oil market is now larger at $45 a barrel than it
was at $147.
STOCKS RISE
U.S. crude oil stocks are expected to have risen a further
2.7 million barrels last week, the fifth straight week of gains.
The government data is due out on Wednesday.
Colder weather is expected to help draw down distillate
stocks by 800,000 barrels, according to a Reuters poll. Gasoline
stocks are likely to have risen by 1.3 million barrels. []
"The economic situation, oil stocks do not support higher
numbers," said Julian Keites of brokerage Newedge in a research
note.
"But in conjunction with OPEC cuts that began in November
'08 and talk they will meet again if oil goes below $40, seems
to provide market confidence and thus trading is at the top end
of the range $37-$52."
The Organization of the Petroleum Exporting Countries has
agreed to reduce supply by 4.2 million barrels per day since
September to try to support prices. The producer group is due to
meet next in March.
Oil traders will get an early indication of Wednesday's U.S.
government data with the release at 2130 GMT on Tuesday of
inventory figures from the industry group the American Petroleum
Institute, as the API shifts to a new, earlier release schedule.
A cyclone off western Australia has shut down nearly half of
the country's oil output, but some operators said production was
likely to resume by Wednesday as the storm weakens. []
Later on Tuesday, U.S. President Barack Obama goes to
Capitol Hill to campaign for an $825 billion economic stimulus
package to be put to a House vote within days.
(Additional reporting by Jonathan Leff in Singapore; Editing by
James Jukwey)
