February crude gains but March contracts decline

February crude oil futures on the New York Mercantile Exchange gained $2.34 to $38.85 per barrel at the close of floor trade as some traders bought just before the contract closed Tuesday, but the more active March contracts which takes over as the front-month contract had dropped $1.74 to $38.25 per barrel in afternoon trade and other future contracts fell as well as investors continued to worry about declining demand.

Meanwhile, at last report Brent crude for March delivery was down $1.25 to $43.55 on the ICE Futures Europe exchange in London.

There were reports that there are as many 80 million barrels of crude oil being stored currently in tankers offshore as traders wait to sell their supplies until prices rise and storage facilities on land remain full.

In afternoon trade, Nymex February unleaded gasoline futures dropped 2 cents to $1.15 per gallon, but AAA reported that retail prices for regular unleaded was up 0.1 cent overnight to $1.84 per gallon on average across the US.

Nymex March natural gas futures were down 17 cents to $4.64 per million British thermal units in afternoon trade in New York.