Crude oil futures crossed 63 dollars a barrel, after Russia and Ukraine struck a deal to end a bitter dispute over gas prices that had disrupted gas supplies across Europe.

New York's main contract, light sweet crude for delivery in February, rose 28 cents to close at 63.42 dollars a barrel.

In London, the price of Brent North Sea crude for February delivery increased 33 cents to 61.68 dollars a barrel.

Ukraine had agreed Wednesday to buy gas at a rate of 95 dollars per 1,000 cubic meters from Russia and the Central Asian states of Turkmenistan and Kazakhstan -- up from about 50 dollars now.

Supplies were cut on Sunday after Kiev had rejected the price increase, in turn affecting Europe which imports a quarter of its natural gas from Russia via Ukraine, and ringing alarm bells from Brussels to Washington.

Oil prices had closed up more than two dollars in New York and London on Tuesday owing to the Russia-Ukraine row, which fueled concerns about Russian energy supplies in general.

Source: Xinhua