Feb. 22 (Bloomberg) -- Crude-oil futures prices rose above $49 a barrel in New York, their highest in almost four weeks, because of unusually cold weather in Northwest Europe and the U.S. Northeast, the largest markets for heating fuels.

Freezing temperatures are forecast for the U.K., France, the Netherlands, Belgium and Germany for the next four days, according to U.S.-based Meteorlogix LLC. They will be lower than normal east of the U.S. Rockies until March 7, according to the National Weather Service. The cold spell is exacerbating concern about global supplies as demand growth forecasts are raised.

``The market is very firm on continued cold weather,'' said Christopher Bellew, a broker with Bache Financial Ltd. in London. With forecasts for faster demand growth, ``OPEC is less likely to cut production and that will put a cap on prices.''

Crude oil for March delivery rose 94 cents, or 1.9 percent, to $49.29 a barrel at 9:52 a.m. London time on the New York Mercantile Exchange, up about 38 percent from a year ago. The exchange was close yesterday for the President's Day holiday. Brent crude for April settlement gained 56 cents to $47.29 after closing yesterday at a four-week high.

The Organization of Petroleum Exporting Countries, producer of about 40 percent of the world's oil, and the International Energy Agency raised their 2005 demand growth forecasts this month. The Paris-based IEA, adviser on energy policy to 26 industrialized nations, underestimated last year's increase in consumption, the biggest in almost three decades.

Gasoil Climbs

``The markets have taken these upward revisions in demand forecasts quite seriously and this has to have an impact on prices,' said Dariusz Kowalczyk, senior investment strategist at CFC Securities Ltd. in Hong Kong. ``With the colder weather returning, the significance of heating oil in setting crude oil prices will be higher.''

The contract for March settlement of gasoil, the European equivalent of heating oil, jumped 1.8 percent, or $7.75, to $432 a ton on the IPE at 9:52 a.m. London time, after reaching $433 a ton, its highest since November.

American heating-oil stockpiles were 12 percent lower in the week to Feb. 11 than their five-year seasonal average, according to the U.S. Energy Department. Crude shipments this month will reach refiners once the heating season is almost over.

A failure to accumulate enough inventories in preparation for the next Northern Hemisphere winter means that demand would probably outstrip supplies in the fourth quarter, the London-based Centre for Global Energy Studies said.

Inventory Recovery

Oil ministers from members of OPEC have said they may trim production if stockpiles rise and prices fall. A decision to cut output may be delayed until June because of faster-than-expected demand growth, they have said. OPEC meets next in Isfahan, Iran, on March 16.

``The oil industry is facing a major structural shift, putting OPEC firmly in the driving seat,'' the CGES said in a monthly report yesterday. Prices could rise to a record $55 a barrel for Brent in the fourth quarter unless commercial oil inventories are allowed to recover, which means ``OPEC must tolerate large'' summer stockpile increases.

Bets on rising prices, or net-longs, by hedge-fund managers and other large speculators on Nymex rose by 4,071 the week ended Feb. 15 to 31,628, according to the U.S. Commodity Futures Trading Commission. They peaked at 82,451 in March.

To contact the reporter on this story: Alejandro Barbajosa in London at abarbajosa@bloomberg.net.

Last Updated: February 22, 2005 05:10 EST