U.S. crude futures jump ahead of peak winter demand

* Mild weather seen keeping prices close to 2009 lows
* Start of winter has seen 30 pct less heating days than
usual
* Outlook to Jan. 4 is for 23 pct less heating days than
usual

By Henning Gloystein
SINGAPORE, Dec 22 (Reuters) - U.S. crude futures jumped away
from 2009 lows in early Asian trading on Tuesday as the peak
winter month took over as the prompt delivery contract, but
milder weather than usual was capping heating demand and the
price outlook for early 2016.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
trading at 35.88 per barrel at 0829 GMT, up from 2009 lows of
$33.98 a barrel hit the previous session.
Despite the bounce, which is seen as typical as contracts
roll over for expiry on Dec. 20 2016 and amid the peak winter
demand, analysts said unusually mild weather would drag on
prices.
Oil analysts at BNP Paribas (PA:BNPP) said that the amount of U.S.
heating degree days had been 30 percent below the 10-year
average since Dec. 7 and that days requiring heating were
expected to remain 23 percent below normal until Jan. 4.
"In the next two weeks as a whole, the U.S., Europe and
Russia will be particularly milder than normal," the bank said.
An unusually mild start to the winter has dominated the
northern hemisphere, caused in part by the El Nino weather
phenomenon, keeping heating oil demand lower than the norm.

This weak demand pattern is seen clashing with an expected
rise in supplies once Iran's oil exports start to fully return
after a lifting of western sanctions against Tehran.
Bank of America Merrill Lynch (N:BAC) said Iranian output could go
up by 600,000 barrels per day, from a current volume of around 1
million barrels per day, over a period of six months once
sanctions are lifted.
The International Energy Agency said this week that it
expected Iran's exports to rise by half a million barrels per
day within 6-12 months of sanctions being lifted.
Iran's barrels would add to an already oversupplied market
that has seen prices fall by two-thirds since mid-2014,
undercutting lows seen during the 2008 financial crisis and
pulling oil to levels last seen more than a decade ago.