U.S. oil prices rose Monday, erasing earlier losses, after nearing the psychologically key $40-a-barrel level. The U.S. benchmark had fallen as low as $40.06 a barrel on the New York Mercantile Exchange in intraday trading before rebounding. Prices settled up $1, or 2.5%, to $41.74 a barrel. Analysts cautioned that the rally could be short-lived and attributed the price gains to traders who had bet on lower prices closing out those positions. France escalated its air campaign against Islamic State following the Paris terror attacks , increasing market jitters about the Middle East, the world’s most prolific oil-producing region. Both benchmarks slid to three-month lows Friday on concerns about large global inventories. U.S. prices last fell below $40 a barrel in August amid broad concerns about the pace of Chinese economic growth. Before that, the $40 level was last broached in 2009. “As we approach these six-year lows, you’ll […]