Updated from 2:41 p.m. EST
Crude oil prices jumped Tuesday after three straight losing sessions as unseasonably warm weather in the U.S. weighed on the market.
The February futures contract closed $1.79 higher at $43.90 a barrel in Nymex floor trading on reports that Saudi Arabia has executed its share of production cuts stipulated in OPEC's recent agreement to trim output by 1 million barrels a day in January.
At this time of year, traders normally place unusual emphasis on weather patterns; demand for heating oil in the U.S. and Europe is at its peak. The recent swing in temperatures has had a similar effect on prices.
The market is also waiting for weekly inventory data from the U.S. Energy Department due out Wednesday.
Prices are more than 20% below their record closing high of $55.17 in late October. Nevertheless, the benchmark crude is trading about $10 a barrel higher than a year ago.