NEW YORK, United States – Crude oil followed the stock market to higher ground Tuesday, settling higher for the first time in five sessions.

Benchmark crude for February delivery rose US$1.02 to settle at US$79.02 on the New York Mercantile Exchange.

Investors boosted health stocks, watching a Massachusetts election to fill the seat of the late Sen Edward M Kennedy. Some hoped for a Republican victory that would make it more difficult for Senate Democrats to pass a health care bill. The Dow Jones Industrial Average gained 115.78, or 1.09 per cent, on the New York Stock Exchange.

Earlier Tuesday, oil prices were held in check after the Organization of Petroleum Exporting Countries, which supplies roughly 35 per cent of the world’s crude, kept its 2010 forecast of oil demand steady at 85.15 million barrels a day. OPEC said oil inventories remain at high levels and are enough to handle any unexpected increase in demand.

Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore, said oil prices were likely to stay in a range as investors waited for cues from fourth quarter corporate earnings reports in the US.

So far, earnings have been mixed, with better-than-expected results from the likes of Intel Corp. offset by disappointments elsewhere, most notably Alcoa Inc.

In other Nymex trading in February contracts, heating oil fell 0.06 cent to settle at US$2.0454 a gallon, while gasoline added 1.37 cents to settle at US$2.0591 a gallon. Natural gas futures shed 13.4 cents to settle at US$5.557 per 1,000 cubic feet.

In London, Brent crude for March delivery rose 53 cents to settle at US$77.63 a barrel on the ICE Futures exchange.