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 Crude futures rebound with an eye on cliff talks

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fxpulsation




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Join date : 2012-01-25

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PostSubject: Crude futures rebound with an eye on cliff talks   Crude futures rebound with an eye on cliff talks Icon_minitimeWed Dec 26, 2012 10:49 am

Crude futures rebound with an eye on cliff talks

Oil prices moved higher on Wednesday as investors nervously eyed the restart of fiscal-cliff talks after President Barack Obama said he would return early to Washington to try and work out a new deal.

Crude oil for February delivery rose 45 cents, or 0.5%, to $89.06 a barrel. Markets will return in full on Wednesday following the Christmas break. Oil settled 5 cents lower at $88.61 a barrel on Monday.

Obama is due to reach Washington early Thursday to take part in talks aiming at avoiding the fiscal cliff of austerity measures due to kick in at the beginning of 2013, according to media reports. Read: Obama returning to DC early for fiscal-cliff talks

Both chambers of Congress are also due to return to work on Thursday. Just a few days remain before the new year, when a mandatory package of spending cuts and tax rises kicks in. Economists warn that going over the cliff will weigh on the U.S. economy.

The White House and the Republicans failed to reach a deal ahead of the Christmas break. See MarketWatch’s fiscal cliff page

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