quarter shortages," said Christopher Bellew of Bache Financial. "Even people who have been bearish prefer to sit on the sidelines, rather than to sell." News of the storm had a bigger impact on product futures than on crude, driving U.S. heating oil futures to a record of $1.758 a gallon. They eased slightly from that peak to trade 3.79 cents higher at $1.736. U.S. crude oil inventories are close to their highest level for six years. But distillate stocks -- including high-demand fuels diesel and heating oil -- are at the lower half of the average range for the time of year, fostering doubts about refiners' ability to meet peak demand in the fourth quarter. The focus on oil products has blunted efforts by the Organization of the Petroleum Exporting Countries (OPEC) to soothe supply worries by pumping more than 30 million barrels per day (bpd), the highest in 25 years. OPEC last week suspended talk of increasing production by a further 500,000 bpd, a decision analysts said had had limited impact in a market supported by refinery bottlenecks rather than a shortage of crude. OPEC's president said last week the group would bring on the extra production if prices rose to $60 a barrel. --SP 2320 Local Time 2020 GMT
