UPDATE

WRAP FOR JAN 30

Crude oil rose in New York after a government

report showed that the U.S. economy contracted

less than forecast in the fourth quarter, signaling

energy demand may strengthen.

Oil gained as much as 4.8 percent, and gasoline

reached an 11-week high after the Commerce Department

said gross domestic product shrank at a 3.8 percent

annual pace, less than the 5.5 percent forecast.

The International Energy Agency and OPEC have both

trimmed global demand forecasts, citing economic factors.

Crude oil for March delivery rose 24 cents, or 0.6 percent,

to settle at $41.68 a barrel at 2:46 p.m. on the

New York Mercantile Exchange. Prices fell 6.5 percent

in January, stretching crude’s decline to seven

consecutive months, the longest on a monthly basis

since Nymex trading began in 1983, according to

exchange data.

Oil is down 72 percent from a July 11 record of

$147.27 a barrel as the U.S., Europe and Japan sank

deeper into recessions. Prices fell 10 percent

this week.