Budget talks, home prices lift oil prices

Last updated 05:00 28/12/2012

Relevant offers

World

After a long life together, elderly couple die minutes apart while holding hands Uber's self-drive boss crashes and burns over trade secrets scandal Hollywood writers strike back as pay packets shrink Australia's Network Ten could be sold for parts if it fails to improve earnings Twitter posts strong user growth, shares soar China's richest man moves into marathons as part of global sports expansion Trump 'determined to unleash economic growth for businesses' with plan to slash taxes Big Bash or bust for Nine in face of falling popularity in cricket on TV CEO to step down from Dreamworld owner Ardent Leisure Big Mac makeover gives McDonald's a boost

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