Jan 30, 3:35 PM EST

Oil soars on signs US oil companies curtail production

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NEW YORK (AP) -- The price of oil is up 7 percent on indications that production in the U.S. has slowed following the big drop in prices since last June.

U.S. oil surged $3.18 to $47.71 a barrel.

Baker Hughes reported that the number of rigs drilling for oil in the U.S fell by 94 in the past week to 1,223. That's down 199 from this time last year.

The price of oil plummeted about 60 percent since June as global supplies grew faster than demand. OPEC has declined to cut back on its production, putting pressure on U.S. companies to curtail drilling as oil prices fall to a level that makes some production unprofitable.

Futures prices for wholesale gasoline and heating oil also rose sharply, up more than 5 percent.

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