Oil Prices Gained Tuesday

Oil prices settled above US$55 Tuesday, after a volatile trading day that saw prices sink to 18-month lows on expectations for more mild U.S. weather and selling by large investment funds.

Crude prices have plummeted nearly nine per cent this year. Drivers hoping for lower prices at the pump are starting to see gasoline prices fall as well - but not by much. Retail gasoline prices have fallen 3.5 cents over two weeks to a national average of $2.306, according to a government report released Tuesday.

Light, sweet crude for February delivery shed 45 cents to settle at $55.64 a barrel on the New York Mercantile Exchange, after plunging as low as $53.88 in earlier electronic trading.