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NEW YORK (CNN/Money) - Oil prices rose almost $1 Wednesday, settling near $58, after a government report showed smaller-than-expected stockpiles of crude, while distillates rose more than analysts thought they would.

Light, sweet crude for December delivery gained 90 cents to close at $57.88 a barrel on the New York Mercantile Exchange.

The Energy Information Administration said supplies of crude oil fell by 2.2 million barrels for the week ending Nov. 11. Analysts had predicted a build of 2 million barrels, according to Briefing.com.

The report also said supplies of distillates -- used for heating fuel -- rose by 2.6 million barrels while gasoline stocks fell by 900,00 barrels. Analysts polled by Briefing.com had predicted an 450,000 barrel rise in distillates and a 1.6 million barrel build in gasoline supplies.

"It's inevitable we would have a little bit of a pullback [in inventories] after last week's report," said Phil Flynn, a senior market analyst at Alaron trading in Chicago.

Flynn said he anticipates crude prices will rise even higher as the weather cools. "We're heading into a high-demand period. Even though we have ample supplies, we're not exactly over supplied," he said.

Crude was trading near four-month lows before the report after hitting record highs for the last several months, which was sparked by tight supplies and rising demand in the United States, China and India. Prices reached an all-time trading high of $70.85 on Aug. 30 following Hurricane Katrina, which ravaged oil-production facilities in the Gulf of Mexico in addition to the refineries on the coast.

In its monthly report, the Organization of the Petroleum Exporting Countries bumped up its world oil demand forecast for 2006.

According to the cartel, a healthier economic outlook and vigorous growth in developing countries have demolished the case that high prices were destroying demand.

OPEC said demand for its oil in the fourth quarter of this year is 276,000 bpd higher than previously expected and stands higher than current OPEC crude production of 30 million bpd.

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