Oil tops USD 79 mark amid supply concerns

New York, Dec 29 : Oil prices topped USD 79 a barrel Monday as investors eye a drop in fuel supplies in a cold winter.

Light, sweet crude for February delivery settled at USD 78.77 a barrel, trading up 72 cents, on the New York Mercantile Exchange, Xinhua reported.

Futures rose to as high as USD 79.12 a barrel earlier in the session, which is the highest trading price in about five weeks.

Many parts of the US have experienced snowstorms in December and more frigid temperatures are expected in New England and the Lower Great Lakes. US crude inventories have been in decline in the past three weeks amid rising energy demand.

A fresh row between Russia and Ukraine on terms to transit oil to Europe has also added to concerns over supply disruption.

In London, Brent crude for February delivery rose USD 1.01 to settle at USD 77.32 a barrel on the ICE Futures Exchange.