Oil Prices Jump on Rumor of Saudi Cuts

"We are frankly in unknown territory at this stage," Nehru said.

Oil prices have fallen 70% since peaking at $147.27 in July.

In other Nymex trading, gasoline futures rose 3.2 cents to settle at 96.87 cents a gallon. Heating oil fell 3.42 cents to settle at $1.40 a gallon while natural gas for January delivery rose 10.7 cents to settle at $5.686 per 1,000 cubic feet.

In London, January Brent crude rose 77 cents to settle at $42.20 on the ICE Futures exchange.

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Associated Press writers George Jahn in Vienna, Austria, Tomoko A. Hosaka in Tokoyo, Alex Kennedy in Singapore and Martin Crutsinger in Washington contributed to this report.