Current Oil Prices Bounce Before Fed Meeting

The current oil price remains volatile prior to the Federal Reserve’s next meeting.

On the New York Mercantile Exchange, the U.S. benchmark gained 9 cents to a crude price per barrel of $85.65. The price of the commodity had dropped for five consecutive trading sessions.

The Federal Reserve is about to hold a policy meeting for two days that is expected to introduce a fresh bond-buying project for the purpose of helping the economy of the United States.

Moreover, traders are observing negotiations between the White House and Congress over the U.S. budget. There is little indication that both parties are close to reaching a deal that would avert the looming “fiscal cliff,” a series of automatic tax rises and spending reductions that economists say can possibly lead to another recession.

Prior to the up and down movement of the current crude oil prices, the commodity rose in the early parts of the trading session after a poll showed the belief of German investors that the biggest economy of Europe may not fall into recession in spite of the economic challenges of the region.

At the pump, the current gasoline prices of $3.328 a gallon reflect an overnight drop of one cent, according to the Wright Express, Oil Price Information Service and AAA. That rate is higher by around 5 cents compared to last year.

On London’s ICE Futures Exchange, Brent gained 24 cents to a crude price per barrel of $107.57.

Elsewhere in the commodities market, heating oil and wholesale gasoline increased by 2 cents and 1 cent to their respective price per gallons of $2.92 and $2.61. On the contrary, natural gas shed a penny to $3.45 per thousand cubic feet.