LONDON (Reuters) — Oil rose above $61 on Wednesday, pushed higher by expectations colder weather in the U.S. Northeast would boost demand in the world's top heating oil market.

U.S. light crude rose 21 cents to $61.20 a barrel by 12:34 GMT, while London Brent crude traded 38 cents higher at $61.59 a barrel.

"I think it's the weather and underlying it, a seasonal increase in demand growth," said Mike Wittner of investment bank Calyon of this week's price strength.

So far this week, U.S. crude has risen by around $2.

Private forecaster AccuWeather said on Monday cold weather would hit the U.S. East Coast by the weekend, ending a stretch of above-normal temperatures that have curbed fuel demand.

Prices are still trapped in a two-month trading range of $58-$62 a barrel, with the market looking for further direction on U.S demand strength from weekly government data to be released later on Wednesday.

Analysts polled by Reuters predicted the figures would show U.S. crude stocks fell by 100,000 barrels last week as refineries increased production. Distillate stocks were seen rising by 400,000 barrels and gasoline stocks by 500,000 barrels.

Oil prices have to an extent been buoyed by a weaker dollar, which on Wednesday fell to its lowest level against the euro since March 2005, theoretically increasing the spending power of non-dollar consuming countries when buying oil.

"The perception is that it's good for demand, so I guess it is positive for prices," Wittner said of the weaker dollar, although he added that in the short term oil demand tended to be fairly inelastic.

OPEC ministers, who next meet on December 14 in Nigeria, have voiced concern about high inventory levels.

But Kuwait's energy minister Sheikh Ali al-Jarrah al-Sabah said on Wednesday the producer group would not need to cut again if prices held near $61 a barrel.

"In my personal opinion, if prices maintain these levels, I don't imagine that there is a need for a reduction," he told Reuters.

Leading OPEC minister Saudi Arabia's Ali al-Naimi said on Wednesday the kingdom wanted fair and stable oil prices, but was not prepared to act alone to maintain market balance.

"The kingdom is not prepared in any way to be alone in the task of balancing the market through what is known as swing production, whereby the kingdom cuts production on its own to maintain prices while others (producers) do not," he said.

OPEC has already agreed to cut output by 1.2 million barrels per day from November 1, although analysts have said the group has not cut by the full amount.