Oil price jumps as US averts 'fiscal cliff'

Published on NewsOK Modified: January 2, 2013 at 2:40 pm •  Published: January 2, 2013
Advertisement
;

NEW YORK (AP) — The price of oil jumped Wednesday on the first trading day of the new year, after a deal in Washington averted the dreaded "fiscal cliff."

The House voted near midnight to send the bill to President Barack Obama after a tense day of political brinksmanship on Capitol Hill.

Benchmark crude for February delivery rose $1.30 to finish the first trading day of the year at $93.12 a barrel on the New York Mercantile Exchange. It was as high as $93.87 a barrel at one point earlier in the session. Energy prices followed stock markets higher. In afternoon trading the Dow Jones industrial average was up about 2 percent. The Nasdaq and the S&P 500 were both up more than 2 percent.

More hurdles are ahead for the U.S. economy, including a new deadline for more spending cuts in two months. Oil analyst Phil Flynn says in the meantime, "ignorance is bliss and this deal should propel oil to...near $96 a barrel."

Brent crude, used to price various kinds of international oil, rose $1.36 to end at $112.47 a barrel on the ICE Futures exchange in London.