Current Oil Price Gains on Last Attempt to Reach Budget Deal

The current oil prices moved up as political leaders of the U.S. prepared for their last attempt at reaching an agreement to avert the fiscal cliff.

In the late afternoon, Bangkok time trading on the NYMEX, the U.S. benchmark for delivery in February gained 27 cents to a crude price per barrel of $91.25. Yesterday, prices sharply increased on higher prices of U.S. housing and on hopes of an agreement in Washington talks. The contract posted a 2.7 percent growth, or $2.37, to end at $90.98 a barrel in thin trading after Christmas.

The U.S. President is coming back from a short vacation to continue the budget negotiations with Congress. The aim of the talks is to stop the fiscal cliff of severe budget reductions and rising taxes that would begin on the 1st of January.

The consumer confidence survey for December is about to be released by the Conference Board. It is predicted that the current confidence index fell to 71 from November’s 73.7. The University of Michigan recently released a separate poll showing a drop in consumer confidence this December. Consumers may be beginning to feel concerned on whether a budget agreement will be reached by Congress and the White House.

Meanwhile, Brent shed 11 cents to a price of $110.96 a barrel on London’s ICE Futures Exchange.

Elsewhere in the commodities markets, heating oil marginally increased to $3.067 per gallon. Wholesale gasoline shed 0.1 cent to a price of $2.8148 per gallon. And natural gas dropped 2.3 cents to $3.369 per thousand cubic feet.