Oil at US$98

Benchmark oil fell 30 cents to end at US$98.48 per barrel in New York after hitting US$101.29 per barrel earlier in the day.

Brent crude rose 23 cents to finish at US$110.98 per barrel in London.

Natural gas prices plummeted nearly 8 per cent Tuesday after a government report said US production hit a record high.

The price of natural gas dropped by 21 cents to finish at US$2.50 per 1,000 cubic feet in New York. It was 18 cents above the decade low that it hit 12 days ago.

Output of natural gas is rising at a time of weak demand because of mild winter weather, causing ample supplies to grow further.

The Energy Information Administration said Monday that natural gas production in the lower 48 states totalled 72.61 billion cubic feet per day in November, up 2.4 per cent from October.

Heating oil rose one cent to end at US$3.06 per gallon and gasolene futures rose 2 cents to finish at US$2.89 per gallon.

- AP