Oil prices jumped to their highest level in more than three months on Tuesday, rallying above $51 a barrel as traders considered cold weather, the declining dollar and a potential cut in supply from OPEC when the producers' cartel gather in Iran next month.

After climbing as high as $51.40, light sweet crude for March delivery settled at $51.15 a barrel on the New York Mercantile Exchange, an increase of $2.80.

Brent crude was up $1.87 on London's International Petroleum Exchange, fetching $48.62 a barrel.

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