Oil prices rise on production fears

VIENNA, Austria – Oil prices rose sharply Monday as rising political tension in the Middle East appeared to outweigh worries that a possible U.S. recession could curb oil demand.

After opening lower, light, sweet crude for February delivery rose $1.23 to $93.92 a barrel by afternoon in European electronic trading on the New York Mercantile Exchange.

The February contract fell $1.02 on Friday, when energy investors were focused on U.S. economic data that suggested the economy is struggling to make headway against the challenges posed by a troubled housing market and high oil prices.

AP