Oil prices bounced higher on Tuesday following Monday's fall of nearly $3 as forecasts for warmer weather eased worries about tight supplies of winter fuel.

February crude futures rose to settle at $41.77 a barrel, up 45 cents. London's International Petroleum Exchange was closed for a seasonal holiday.

Oil prices are nearly 25 percent below the late October high above $55 a barrel, although they remain nearly 30 percent higher than a year ago.

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