Crude oil futures seesawed for most of the session, finally settling above $101 a barrel, as traders keep a close eye on developments in Europe.

Crude for January delivery settled 29 cents higher at $101.28 a barrel on the New York Mercantile Exchange, the highest settlement since 16 November.

Brent crude on the ICE futures exchange advanced $1 to settle at $110.81 a barrel.

Sentiment had been dampened on Tuesday by ratings agency Standard & Poor's, after it warned that it had placed the sovereign ratings of nearly all of the eurozone members on watch for a potential downgrade.

The stronger dollar also pressured crude prices, making it more expensive for holders of other currencies.

However, simmering tensions between Iran the West helped fuel crude's gain above $101 barrel. Hopes that Europe will resolve its debt crisis also helped momentum.

Gold prices fell 0.2% on Tuesday in the wake of Standard & Poor's warning of possible downgrades on 15 eurozone nations.

Gold for February delivery lost $2.70 to settle at $1,731.80 an ounce on the Comex division of the New York Mercantile Exchange.

Bullion's safe have allure has been fading with investors more inclined to turn to cash, the dollar or bonds as uncertainty over the global economic outlook continues.

Related share prices