Oil prices climb as U.S. political leaders brace for talks

Oil prices climb as U.S. political leaders brace for talks

PanARMENIAN.Net - Oil prices climbed Thursday, Dec 27, as U.S. political leaders prepared for one last try at reaching a budget deal to avoid the so-called "fiscal cliff," The Associated Press reports.

Benchmark oil for February delivery rose 21 cents at midday Bangkok time to $91.19 per barrel in electronic trading on the New York Mercantile Exchange. Prices rose sharply Wednesday on higher U.S. home prices and hopes of a budget deal in Washington. The contract jumped $2.37, or 2.7 percent, to finish at $90.98 per barrel in thin post-Christmas trading in New York.

President Barack Obama was returning to Washington on Thursday after a brief vacation to resume budget talks with Congress. Negotiations are aimed at avoiding the "fiscal cliff," the deep budget cuts and tax increases that would kick in on Jan 1 and that some say would send the U.S. into another recession.

Later Thursday, the Conference Board will release its December survey of consumer confidence. The forecast is that the confidence index declined to a reading of 71 from 73.7 in November. A separate survey last week from the University of Michigan showed consumer confidence tumbled this month. Consumers may be starting to worry about whether Congress and Obama can reach a budget deal.

In London, Brent crude, used to price various kinds of foreign oil, fell 20 cents to $110.87 per barrel.

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