Oil futures rallied back above $33 U.S. a barrel on Wednesday, after data south of the border showed a jump in weekly demand for products such as heating oil when a cold front hit the country.
Analysts say, though, the rise in prices may not last long.
Data from the U.S. Energy Information Administration showed inventories of distillates such as heating oil fell by more than four million barrels, thwarting expectations for a rise of nearly two million.
The EIA reported crude inventories rose by 8.4 million barrels in the week through Jan. 22, bringing the total in storage to 494.9 million barrels, the highest on record.
Brent crude rose $1.26 to $33.06 U.S. a barrel shortly before noon Eastern time, having hit a session low of $30.83 U.S., in lockstep with European equities edging off the day's lows.
U.S. crude futures were up 95 cents at $32.40 U.S. a barrel, off a session bottom of $30.14 U.S.
Partly fueling the rally was relief that the build in inventories shown by the EIA fell short of that reported by the American Petroleum Institute the day before.
Oil prices have fallen nearly 16% in January, bringing total losses since the start of the decline in mid-2014 to 77%.
