Hunt


Sponsored By:

   The Nation  |  Business  |  Equipment  |  Features


'Fiscal cliff' worries pressure oil prices downward

Benchmark crude dropped 88 cents, or 1 percent, to $86.31 per barrel in afternoon trading in New York. Benchmark crude dropped 88 cents, or 1 percent, to $86.31 per barrel in afternoon trading in New York.

By SANDY SHORE
The Associated Press

11/28/2012

The price of oil fell Wednesday as traders looked for signs of progress in negotiations over U.S. budget issues.

Benchmark crude dropped 88 cents, or 1 percent, to $86.31 per barrel in afternoon trading in New York.

Oil has traded in a narrow range this month as cautious investors await the outcome of budget talks in Washington. Without an agreement, huge tax hikes and spending cuts will take effect Jan. 1 that economists say could push the U.S. into a recession. And would mean less demand for oil and other energy products.

"As long as our legislators keep tossing a whole lot of uncertainty at us, these fixed asset classes such as oil are more apt to drop than increase," oil analyst Jim Ritterbusch said.

The uncertainty over the "fiscal cliff" is also leading to swings on Wall Street. U.S. stocks fell in the morning but were higher by midday.

Brent crude, which is used to price many international varieties of oil, fell 91 cents to $108.96 a barrel on London's ICE Futures exchange.

In other energy futures trading on the New York Mercantile Exchange:

— Heating oil fell 2 cents to $3 per gallon.

— Wholesale gasoline fell 3 cents to $2.66 per gallon.

— Natural gas fell 13 cents, or 3.3 percent, to $3.76 per 1,000 cubic feet.

The Trucker staff can be reached for comment at editor@thetrucker.com.

Find more news and analysis from The Trucker, and share your thoughts, on Facebook.