Crude Posts Modest Rise for Week
NEW YORK--Crude-oil futures rose Friday, moving prices into positive territory for the week as traders were more hopeful that the U.S. fiscal cliff could be averted.
Light, sweet crude for January delivery settled 84 cents, or 1%, higher at $88.91 a barrel on the New York Mercantile Exchange. ICE Brent crude rose 34 cents to $111.10 a barrel.
The gains Friday followed a 1.8% rise Thursday and sent prices 0.7% higher for the week. Encouraging comments during most of the week from U.S. government officials has led to some cautious optimism that a budget deal can be reached before the end of the year, when a series of severe budget and tax cuts will automatically go into effect.
Several economists have warned the measures are so draconian that they would push the U.S. economy into a recession, hurting oil demand.
"With today's strength and yesterday's rally, traders are ultimately optimistic," said Peter Donovan, vice president at Vantage Trading. The market has been pricing in "that a deal is going to be reached," he added.
Crude-oil has held in a trading range between $85 and $90 for most of November as investors balanced concerns of a weakening global economy and difficult budget talks against signs of economic improvement in the U.S.
"Oil is subject to the same dynamics as all the other markets, kind of a sideways movement right now," said Jason Schenker, head of Prestige Economics. "The story hasn't changed. It's a story of modest growth and gradually improving economic conditions at home and abroad.
The Chicago Business Barometer, a survey of Illinois, Indiana and Michigan purchasing managers, moved to a reading of 50.4 for November, up from October's 49.9. Any reading above 50 indicates an expansion in manufacturing activity.
Meanwhile, U.S. consumer spending fell 0.2% last month, the first decline since May, the Commerce Department reported.
A growing economy will spark increased demand for raw materials, such as crude oil.
Front-month December reformulated gasoline blendstock, or RBOB, settled 2.56 cents, or 0.9%, lower at $2.7614 a gallon. December heating oil settled 0.07 cent higher at $3.0413 a gallon.
Both contracts expired at settlement Friday.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension