Tuesday, October 6th9.0°C

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 TSX13647.26+95.06
S&P CDNX538.69+8.78
S&P 5001979.92-7.13
CDN Dollar0.7682+0.001
Natural Gas2.457-0.013

Okanagan Companies
Pacific Safety0.21-0.01
QHR Technologies Inc1.25+0.03
Metalex Ventures0.05-0.01
Russel Metals23.31+0.80
Copper Mountain Mining0.56+0.06
Colorado Resources0.07-0.01
ReliaBrand Inc0.0031-0.0009
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.085-0.010
Decisive Dividend Corp3.06-0.43
Diamcor Mining0.90+0.00



2412693Just listed! Custom Home for sale
more details
Click here to feature your property
Please wait... loading

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...



Member of BC Press Council