Wednesday, October 1st14.8°C
22738
22916

Oil jumps to $93 a barrel

The price of oil jumped by more than dollar to above US$93 a barrel Wednesday after U.S. lawmakers passed legislation to avoid a "fiscal cliff" that could have pushed the world's biggest economy into recession.

The U.S. House of Representatives voted near midnight Tuesday night to approve a tax and spending bill and send it to President Barack Obama after a frantic day of political brinkmanship in Washington.

By early afternoon in Europe, benchmark West Texas Intermediate crude for February delivery was up $1.49 to US$93.31 a barrel in electronic trading on the New York Mercantile Exchange. The contract had risen $1.02 to finish at US$91.82 per barrel in New York on Monday.

Brent crude, used to price various kinds of international oil, was up $1.12 to US$112.23 a barrel on the ICE Futures exchange.

Economists had warned that if Congress did not take action a series of tax increases and spending cuts due to automatically start this year could have helped push the U.S. into recession.

Some House Republicans at first opposed the bill, which neutralizes middle class tax increases and $24 billion in spending cuts set to take effect over the next two months while raising taxes on the wealthy. They wanted more spending cuts but hours later agreed to a simple yes-or-no vote on the bill, which had already passed the Senate.

As a result of a broad increase in market sentiment, the dollar weakened as investors felt confident to invest in relatively riskier assets.

A weaker dollar makes crude cheaper and a more attractive investment for traders using other currencies. On Wednesday, the euro rose to $1.3280 from $1.3213 on Monday, the previous trading session.

In other energy futures trading on the Nymex, wholesale gasoline rose 3.88 cents to US$2.8005 a U.S. gallon (3.79 litres), heating oil added 2.62 cents to US$3.058 a gallon and natural gas fell 4.1 cents to $3.31 per 1,000 cubic feet.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14805.44-155.069
S&P CDNX896.35-12.94
DJIA16804.71-238.19
Nasdaq4422.085-71.305
S&P 5001946.16-26.13
CDN Dollar0.9010+0.0054
Gold1216.40+0.90
Oil89.10-0.01
Lumber344.10+6.30
Natural Gas4.036+0.013

 
Okanagan Companies
Pacific Safety0.135+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.22-0.04
Cantex0.075+0.01
Anavex Life Sciences0.1804-0.0036
Metalex Ventures0.0550.00
Russel Metals34.68+0.11
Copper Mountain Mining2.29-0.13
Colorado Resources0.16-0.005
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.31-0.01

 



23479

FEATURED Property
20586872093 Horizon Drive
4 bedrooms 3 baths
$599,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_








Member of BC Press Council


23504