Traffic map
Article updated: 11/29/2012 6:58 AM

Oil rises as worries over U.S. budget deal ease

text size: AAA
By Associated Press

BANGKOK -- The price of oil rose Thursday as U.S. leaders voiced optimism that a budget deal would be reached before the end of the year.

Benchmark crude for January delivery was up 53 cents to $87.02 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract dropped 69 cents to finish at $86.49 per barrel in New York.

Advertisement

Oil has traded in a narrow range this month as cautious investors await the outcome of budget talks in Washington. Without an agreement, huge tax hikes and spending cuts will automatically take effect Jan. 1 -- the deadline dubbed the "fiscal cliff."

Economists say that could push the U.S. back into a recession, and it would mean less demand for oil and other energy products. But Republican House Speaker John Boehner and President Barack Obama both issued statements Wednesday indicating that negotiations were progressing.

In Europe, meanwhile, sentiment improved this week after Greece's bailout creditors agreed to pay its next installment of loans and outlined a series of measures to lower its debt load over the coming decade.

Separately, the American Petroleum Institute reported that crude oil supplies rose 1.96 million barrels in the week ending Nov. 23.

Brent crude, which is used to price many international varieties of oil, rose 29 cents to $109.80 per barrel on London's ICE Futures exchange.

In other energy futures trading on the New York Mercantile Exchange:

-- Heating oil rose 0.9 cent to $3.03 per gallon.

-- Wholesale gasoline rose 0.7 cent to $2.694 per gallon.

-- Natural gas fell 2.7 cents to $3.774 per 1,000 cubic feet.

Comments ()
We are now using Facebook comments to offer a more inclusive, social and constructive discussion. Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.

This article filed under

Business Video
Area Business Calendar

BusinessDirectory

Connect with a business or service in your area fast. First select a town, then enter a search term or choose one of the listed popular searches:

Don't see your town listed? Visit our full directory to begin your search.

MostViewed

Today
Yesterday
Most Commented
Top Jobs

    View all Top Jobs Place a job ad

    DHExtras

       
    • Newspaper next section - Newspaper next section Report card checker - report card checker
    • Dh innovation award 2 - Dh innovation award 2 Zillow /real estate page
    • Discuss refer On Guard series
    • Newspaper archives -- Monday or anyday Mike North

    FacebookActivity