Benchmark light, sweet crude for October delivery on the New York Mercantile Exchange was up by as much as 37 cents to $63.70 a barrel midmorning in Singapore electronic trade before easing slightly to $63.57 from Friday's $63.33 closing.
On Friday, the Organization of Petroleum Exporting Countries said fourth-quarter demand for its oil would be 320,000 barrels a day lower than previously forecast, or 28.86 million barrels per day.
Analysts say prices, which are nearly 20 percent lower than their peak of $78.40 a barrel in July could prompt OPEC, which pumps about 40 percent of total global crude, to slash production to bolster prices.
Traders said market players were reluctant to sell now, waiting instead for demand to pick up ahead of winter. Demand for distillates, including heating oil, spikes for the Northern Hemisphere winter.
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