Oil Advances After Progress on U.S. Budget Agreement
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Oil rose for a third day in New York on speculation that an agreement will be reached to avert a U.S. budget impasse that would trigger automatic spending cuts and tax increases next year, sapping demand for fuels.
West Texas Intermediate futures gained as much as 0.8 percent following yesterday’s close at the highest level in almost two weeks. In discussions on the so-called fiscal cliff, President Barack Obama made a new offer after House Speaker John Boehner dropped his opposition to raising tax rates for some top earners. Crude supplies shrank last week while fuel stockpiles rose, according to a Bloomberg News survey before an Energy Department report tomorrow.