Crude Oil Up 5% on Gaza Tension, OPEC Meeting

Crude oil added more than 5 percent on Monday as the military tension in the Middle East and a possible OPEC emergency meeting next month weighed on the market.

Light, sweet crude for February delivery rose 2.47 U.S. dollars to settle at 48.81 U.S. dollars a barrel on the New York Mercantile Exchange. Price rose to as high as 49.28 dollars a barrel during the trading.

Investors are still concerned that the ongoing tension between Israel and Hamas in Gaza would disrupt oil supplies in the Middle East, a factor that has been bolstering oil prices in recent trading sessions.

Speculation of another OPEC emergency meeting next month added to the gains of the oil price. Iran's state television said OPEC countries have decided to hold an extraordinary meeting on the falling oil prices in February. The oil cartel is scheduled to meet in Vienna on March 15.

An energy dispute between Russia and Ukraine over gas supply also contributed to the rally of the crude oil.

In London, Brent crude for February delivery rose 2.71 dollars to settle at 49.62 dollars a barrel on the ICE Futures Exchange.