Crude prices jumped on Wednesday, the last trading day of 2008, on concerns that a slowdown in US domestic refinery activity could lead to tight fuel supplies.

US government reported that crude stockpiles rose again last week, despite expectations for a steep drop, while gasoline reserves jumped less than forecast.

The weekly data also showed a decline in refinery activity while demand for both gasoline and distillates, which include heating oil, was lower than the same time a year ago.

Russia said on Wednesday that talks with Ukraine over gas prices for 2009 have failed, making a cut-off of gas to Ukraine on January 1 unavoidable.

Light, sweet crude for February delivery rose US$5.57 to settle at US$44.60 a barrel on the New York Mercantile Exchange. In London, February Brent crude rose US$5.44 to US$45.59 a barrel on the ICE Futures exchange.

Oil prices surged to a record high above US$147 in July and then plunged over US$100 a barrel amid the global economic slowdown.

(Xinhua News Agency January 1, 2009)