Light, sweet crude for March delivery jumped $1.69 to $48.16 on the New York Mercantile Exchange, confounding some market experts by seemingly ignoring the fundamentals of high supply and low demand. "From a logical point of view, there is no reason for spot Nymex crude oil to trade above $40," analyst and trader Stephen Schork wrote in his daily publication, The Schork Report. Investors will be looking to U.S. earnings results this week for signs of the economy's health.

The U.S. economy, the world's largest consumer of crude, will "get worse before it gets better," Vice President Joe Biden said Sunday, dampening expectations that a massive government stimulus package will quickly spur growth.

Oil-rich Norway on Monday announced a $2.9 billion stimulus package of tax cuts and increased spending in an attempt to dampen the impact of the global financial crisis.

Norway has put aside more than $286 billion in a fund invested abroad to avoid overheating the country's economy. However, the government can used more oil wealth in Norway when needed.

In London, the March Brent contract rose 87 cents to $49.24 on the ICE Futures exchange.