WTI ends slightly higher on session

Crude oil prices bounced up and down Tuesday, ending slightly higher in New York after having been up as high as $39.50 per barrel at one point in the session.

At last report, Brent crude for February delivery was trading up $1.29 to $44.20 per barrel on the ICE Futures Europe exchange in London, while at the close of floor trade in New York West Texas Intermediate crude’s February contracts were 37 cents higher to $37.96 per barrel.

The gains came on an announcement from Saudi Arabia that it will cut production further than required by lower quotas set by the Organization of Petroleum Exporting Countries.

Prices also rose on comments from US Federal Reserve President Ben Bernanke that the stimulus package put forward by President-elect Barack Obama could significantly help the economy if it is enacted.

However, the Department of Energy said during the day that it expects oil demand will likely continue to fall throughout the year.

In afternoon trade, Nymex February gasoline futures were up 3 cents to $1.11 per gallon and February heating oil added 4 cents to $1.51 per gallon, but March natural gas dropped 32 cents to $5.20 per million British thermal units.