SINGAPORE (Commodity Online) : World oil prices edged higher in Asian trade on the first trading day of 2010 mainly on increase in fuel demand in the US amid freezing temperatures.

Light sweet crude for February delivery was seen trading at $79.94 an ounce at 12.00 noon Singapore time while Brent crude was at $ 78.51 an ounc at the same time.

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Prices were supported this week by cold winter weather in the northern hemisphere, which increases demand for heating fuel.

Cold weather in the US especially in Northeast prompted speculation stockpiles of winter fuels, including heating oil and natural gas, will decline further.

On Thursday, the last trading day of 2009, February contract rose eight cents to settle at $79.36 a barrel.

Crude dropped to a 2009 low of $32.70 a barrel Jan. 20 as the recession reduced demand, and touched a high of $82 on Oct. 21, partly because a weaker dollar bolstered the investment appeal of commodities.

Futures climbed 78 percent last year and tripled over the past decade.

Heating oil for February delivery rose as much as 3.39 cents, or 1.6 percent, to $2.1495 a gallon in New York. It was at $2.1393 at 12.00 noon Singapore time.

Natural gas futures rose as much as 24.9 cents, or 4.5 percent, to $5.821 per million British thermal units. Prices gained 14.9 percent in December.

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