Brent crude at 2-year high on frigid weather, demand

European benchmark Brent crude oil climbed to its highest price in more than two years on Friday, supported by unusually frigid weather that has fueled demand and depleted supplies. ICE Brent for February was up 33 cents at $94.58 a barrel by 0500 GMT, highest since October 2008.

Global benchmark US crude futures, which hit a 26-month high of $91.63 on Thursday, did not trade on Friday with the NYMEX floor closed for the Christmas holiday.

Brent, which has traded at a premium to US crude because of reduced supplies from the North Sea, has surged partly due to a severe cold snap in continental Europe and Britain.

Snow and more frigid temperatures were predicted in parts of Europe over the weekend, threatening to prolong chaos at airlines and rail networks.

"With the upside surprise in oil demand continuing, and the persistence of cold weather helping in rebalancing the oil market further, prices are showing some urgency to enter a new phase of dynamics," said analysts for Barclays Capital in a weekly report.

With back-to-back 26-month highs, traders are now looking for the Organisation of the Petroleum Exporting Countries to signal when it might begin pumping more crude.

Two key Opec ministers hailed oil prices as "fair" on Thursday, showing little inclination to pump more crude to stop rising oil prices.

Arab Opec ministers are meeting in Cairo this weekend where they may discuss oil production and price, but no formal decision on output will take place. Opec's next scheduled meeting is for June.

"Once you get around $100, if it is sustained and the US, Euro area, UK and Japan continue to look weak in their economic growth profile, then at that point you might see some action (from Opec)," said Ben Westmore, a commodities analyst at National Australia Bank.

"But that is many months away and it is contingent on a number of things."

US economic data on Thursday showed new US claims for jobless benefits dipped last week and consumer spending increased in November for a fifth-straight month, reinforcing views of a solid economic growth pace in the fourth quarter.