Crude prices jumped on Wednesday, the last trading day of 2008, on concerns that a slowdown in U.S. domestic refinery activity could lead to tight fuel supplies.
U.S. government reported that crude stockpiles rose again last week, despite expectations for a steep drop, while gasoline reserves jumped less than forecast.
The weekly data also showed a decline in refinery activity while demand for both gasoline and distillates, which include heating oil, was lower than the same time a year ago.
Russia said on Wednesday that talks with Ukraine over gas prices for 2009 have failed, making a cut-off of gas to Ukraine on Jan. 1 unavoidable.
Light, sweet crude for February delivery rose 5.57 U.S. dollars to settle at 44.60 dollars a barrel on the New York Mercantile Exchange. In London, February Brent crude rose 5.44 dollars to 45. 59 dollars a barrel on the ICE Futures exchange.
Oil prices surged to a record high above 147 dollars in July and then plunged over 100 dollars a barrel amid the global economic slowdown.
(Xinhua News Agency January 1, 2009)
