Oil on Friday extended its rally from a 2006 low, after Norway ordered the shutdown of two oilfields that pump almost 13 percent of the output in Western Europe's largest producer, according to Reuters. The operators of Norway's Snorre A and Draugen oilfields said they will halt 280,000 barrels of oil equivalent per day of output for a week or two to make safety improvements to lifeboats. "The main factor is Norway," said Mike Wittner, oil analyst at Calyon investment bank in London. "That's obviously supportive for the market." U.S. crude rose $1.16 to $59.02 a barrel at 1708 GMT. Prices touched $57.22 on Thursday, the lowest since Dec. 19. London Brent crude climbed $1.24 to $60.02. The Norwegian Petroleum Safety Authority ordered the operators of the two fields to shut output due to inadequate lifeboat standards. Norway's Statoil said it will close Snorre A for seven to 10 days. Royal Dutch Shell said Draugen will remain closed while repairs were made over an estimated one to two weeks. The shutdowns will equal almost 13 percent of the country's oil production, which amounted to 2.25 million barrels per day in September according to figures released last week. Oil also drew support from a surprise drop in winter fuel inventories in top consumer the United States. The U.S. government on Thursday reported that distillate inventories fell by 1.6 million barrels last week, contrary to forecasts for an increase. Traders were also watching moves by the Organization of Petroleum Exporting Countries, source of more than a third of world supply, to agree a cut in output. Warm autumn weather has already sapped distillate demand and U.S. government forecasters said this week they expected warmer-than-average temperatures across much of the U.S. for the winter season. "We still have comfortable stocks and temperatures are still extremely mild," said Frederic Lasserre of Societe Generale.
