Oil process rise ahead of ‘fiscal cliff’ talks

PanARMENIAN.Net - The price of crude rose Friday, Dec 28, following stock markets in Asia higher hours ahead of a last-ditch effort in Washington for political leaders to strike a budget deal before the year-end deadline, The Associated Press reports.

Benchmark crude for February delivery rose 40 cents midday Bangkok time to $91.27 per barrel in electronic trading on the New York Mercantile Exchange.

The contract fell Thursday following a reported drop in U.S. consumer confidence and growing pessimism that President Barack Obama and Republican lawmakers will reach a compromise on ways to avoid the so-called fiscal cliff — hundreds of billions of dollars in government spending cuts and tax increases that take effect automatically in 2013 unless lawmakers act.

Hopes that a compromise might be reached were raised after Obama, who cut his Hawaii vacation short, invited congressional leaders to the White House for talks Friday.