Oil Rises a Third Day on Signs of Progress in U.S. Budget: Report
Oil climbed for a third day in New York on signs an agreement will be reached on the U.S. budget, avoiding automatic spending cuts and tax increases next year, Bloomberg reported.
Futures rose after President Barack Obama made a new offer on revenue and House Speaker John Boehner ended his opposition to boosting tax rates for some top earners, increasing optimism that the changes, the so-called fiscal cliff, won't happen. A report tomorrow will show that oil supply dropped, according to a Bloomberg survey.
Crude oil for January delivery advanced 80 cents, or 0.9%, to $88 a barrel on the New York Mercantile Exchange. The contract, which expires tomorrow, touched $88.16, the highest intraday price since Dec. 6. The more-actively traded February future rose 81 cents to $88.48.
Brent oil for February settlement rose $1.14, or 1.1%, to $108.78 a barrel on the London-based ICE Futures Europe exchange.
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