Crude oil rose the most in three weeks, following equities higher, on speculation a bank-rescue plan from President Barack Obama will boost financial companies.
March futures also advanced as traders narrowed the differential to later contracts amid rising inventories.
Crude oil for March delivery rose $2.62, or 6.4 per cent, to $43.46 a barrel at the close of floor trading on the New York Mercantile Exchange. Oil has fallen 2.4 per cent since the end of December and is 52 per cent lower than a year ago.
COMEX
Gold fell for the first time in three sessions on speculation the dollar will strengthen, reducing the appeal of the precious metal as an alternative investment. Silver rose.
The dollar was little changed against a weighted basket of six major currencies after climbing 1.8 per cent on Tuesday. Gold generally moves in the opposite direction of the US currency.
Gold futures for February delivery fell $5.10, or 0.6 per cent, to $850.10 an ounce on the Comex division of the New York Mercantile Exchange.
Silver futures for March delivery rose 15 cents, or 1.3 per cent, to $11.325 an ounce in New York. The metal slumped 24 per cent in 2008 while gold climbed 5.5 per cent.
Gold's gain last year, the eighth straight, was the smallest annual increase since 2004 as the dollar advanced for the first time since 2005.
