Crude oil futures settled above $79 a barrel on Tuesday as Wall Street resumed trading on strong footing.

US healthcare firms rallied in the wake of the Massachusetts election for the Senate. If the Republican Party win Ted Kennedy's old seat in the Senate, they will be in a better position to block President Obama's healthcare bill.

Oil for February delivery erased earlier losses to rise $1.02 at $79.02 a barrel. The February contract expires at the end of Wednesday's session. Demand for oil was driven, despite the stronger dollar, after prices fell to $76.76, the lowest level so far this year.

Among precious metals Comex gold for February delivery ended $9.50 higher at $1,140 an ounce.

A bigger than expected surge in inflation spurred demand for the yellow metal although the stronger dollar kept a lid on bigger gains.

The Office for National Statistics said British annual inflation rose 2.9% in December, trumping expectations of 2.5% rise.

Platinum and palladium revved higher following the recent launch of US exchange-traded funds.

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