WASHINGTON -- Oil prices rose above $63 a barrel yesterday, led higher by gasoline and a recent decision by the Organization of Petroleum Exporting Countries to cut output early next year.
Prices fell sharply on Monday on expectations that warm winter weather would depress demand for home-heating fuels.
Light sweet crude for January delivery rose 94 cents to settle at $63.15 a barrel on the New York Mercantile Exchange. Traders chalked up oil's rise to buying in gasoline futures, which climbed 1.28 cents to $1.675 a gallon on expectations that a government report will today show motor fuel inventories shrank last week.
February Brent at London's ICE Futures exchange rose 68 cents to settle at $62.70 a barrel.