Oil prices rose slightly Monday in Asia as investors looked for signs that U.S. interest rate cuts and a government bailout of two key automakers could help cushion what may be the worst recession in decades, Associated Press reported. Light, sweet crude for February delivery gained 50 cents to $42.86 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract fell Friday 69 cents to settle at $42.36. Investors were somewhat encouraged by Friday's announcement of Washington's $17.4 billion bailout of ailing car giants General Motors Corp. and Chrysler LLC and by the Federal Reserve's move Tuesday to cut its federal funds rate target to a range of zero to 0.25 percent. The Organization of Petroleum Exporting Countries said last week it planned to reduce its output quotas by 2.2 million barrels a day, the group's largest-ever cut. The January contract, which expired Friday, fell $2.35 overnight to settle at $33.87, the lowest level since early 2004. Crude prices have tumbled 70 percent since peaking at nearly $150 in July as a slowing global economy has eaten away at crude demand. In other Nymex trading, gasoline futures rose 1.51 cents to 99 cents a gallon. Heating oil gained 2.25 to $1.41 a gallon while natural gas for January delivery fell 2.4 cents to $5.31 per 1,000 cubic feet. In London, February Brent crude rose 20 cents to $44.20 a barrel on the ICE Futures exchange.
