Crude oil higher ahead of Fed, OPEC meetings

Crude oil prices rose on Monday as investors anticipated another cut in US interest rates by the Federal Reserve and ahead of a meeting Friday in Vienna by members of the Organization of Petroleum Exporting Countries, at which the oil cartel is expected to hold production steady for the time being.

Part of the gain in prices came as rumors circulated that OPEC might decide to cut production at their March meeting, while the prospect of lower interest rates also sent prices higher.

However, analysts warned that any gain in prices could easily be turned back by the declines in demand that are expected by many in the next few weeks after gasoline demand in the US fell by 152,000 barrels last week.

West Texas Intermediate crude for March delivery added 33 cents to close at $91.04 per barrel while March contracts for Brent crude traded up 53 cents to $91.43 per barrel.

Nymex February gasoline and March heating oil each added 1 cent, to trade at $2.33 per gallon and $2.51 per gallon respectively, while March natural gas gained 10 cents to $8.05 per million British thermal units.