Oil prices ease after sharp gains

Oil prices eased Jan. 16 but remained above $94 a barrel after sharp gains a day earlier on improved demand in the U.S.

Benchmark U.S. crude oil for February delivery was down 8 cents at $94.09 a barrel at mid afternoon Kuala Lumpur time in electronic trading on the New York Mercantile Exchange. The contract surged $1.58 to settle at $94.17 in New York Jan. 15.

Brent crude, used to set prices for international varieties of crude, was down 44 cents at $105.83.

The U.S. Energy Department reported that oil supplies fell bigger than expected by 7.7 million barrels the week ending Jan. 10, the seventh straight decline. It was sharply above market expectations of a 1.6 million barrels decline.

—Associated Press