Budget talks, home prices lift oil prices

Last updated 05:00 28/12/2012

Relevant offers


The Islamic State economy: Where the poor starve and the tax man carries a whip Wall St jumps as investors eye rate hike delay, oil up No increased medicine costs under TPPA BP to pay US$20 billion in fines for Gulf of Mexico spill World's 'extremely poor' to fall below 10 percent of global population Lessons from a female business leader in Iran Cereal Killer Cafe: 'We are not the cause of poverty in East London' Wall St execs should have gone to jail for crisis - Ben Bernanke Volkswagen to hold extraordinary board meeting - sources Investors brace for stocks to fall again ahead of earnings

Crude oil prices have risen sharply on higher US home prices and hopes of a budget deal in Washington.

Yesterday, US benchmark crude jumped US$2.37, or 2.7 per cent, to finish at $90.98 per barrel in thin post-Christmas trading in New York.

US home prices rose in most big cities in October, compared with a year ago, a key report showed. The improvement is adding to economic growth, which generally boosts energy consumption and lifts prices.

President Barack Obama will return to Washington today, after a brief holiday, to resume budget talks with Congress, which are aimed at avoiding the "fiscal cliff", the deep budget cuts and tax increases that could slow US growth.

While traders and investors kept an eye on the economy and the fiscal cliff, analysts noted that light trading during the holidays could cause broad swings in oil prices.

"We've got a very, very thin trade," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates.

"It doesn't really take much buying to spike it."

Meanwhile, petrol prices at the pump held at an average of US$3.25 a gallon (3.78 litres). Petrol was at its lowest for the year last Friday, at an average of $3.22 a gallon.

In London, Brent crude, used to price various kinds of foreign oil, rose $2.27 to $111.07. AP

Ad Feedback

- The Dominion Post

Special offers

Featured Promotions

Sponsored Content