Oil prices post sharp rebound in Friday trading

NEW YORK - The price of oil rose 8 percent Friday on indications that production in the U.S. has slowed following the big drop in prices since last June.

U.S. oil surged $3.71 to $48.24 a barrel, with most of the jump coming late in the session.

Baker Hughes (BHI) 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 has 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.