Analysts expect Jan demand to grow by 1.4 mln bpd
US gasoline and distillates stocks rise more than expected
Saudi Arabia crude oil supply to China to fall in Feb

LONDON, Jan 9 Reuters Oil prices rose slightly on Thursday as investors factored in firm winter fuel demand expectations despite large U.S. fuel inventories and macroeconomic concerns.

Brent crude futures were up 35 cents, or 0.5, at 76.51 a barrel by 1246 GMT. U.S. West Texas Intermediate crude futures gained 30 cents, or 0.4, to 73.62.

Both benchmarks fell more than 1 on Wednesday as a stronger dollar and a bigger than expected rise in U.S. fuel stockpiles pressured prices.

The oil market is still grappling with opposite forces seasonal demand to support the bulls and macro data that supports a stronger U.S. dollar in the medium term … that can put a ceiling to prevent the bulls from advancing further, said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day bpd year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays, the analysts said.

The market structure in Brent futures is also indicating that traders are…