Heating Oil, Gasoline Rise on Budget Talks and Economic Gains
Heating oil and gasoline climbed on optimism U.S. lawmakers will reach consensus on a budget deal and as two economic reports showed some gains for the economy.
Futures rose as Treasury Secretary Timothy F. Geithner arrives at the Capitol today to meet with with Congressional leaders as part of an effort to avoid automatic spending cuts and tax increases scheduled to take effect in January. U.S. jobless claims fell last week and the economy expanded more than previously estimated in the third quarter.
“Every time we think we’re going to get a deal done to avoid the fiscal cliff, the market is very happy,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The economic data has been pretty upbeat. We’re daring to hope again and to think demand may improve.’
December-delivery heating oil rose 4.32 cents, or 1.4 percent, to $3.0512 a gallon at 10:02 a.m. on the New York Mercantile Exchange. The more actively traded January contract climbed 4.57 cents to $3.0666. December heating oil and gasoline futures will expire tomorrow.
Gasoline for December delivery gained 3.31 cents, or 1.2 percent, to $2.767 a gallon. The January contract advanced 3.95 cents to $2.7272.
Geithner will meet separately with each of the top four leaders in Congress a day after chief executives from more than a dozen U.S. corporations shuttled from the Capitol to the White House and pressed both sides for an agreement.
Gross domestic product grew at a 2.7 percent annual rate, up from a 2 percent prior estimate, revised figures from the Commerce Department showed today.
Applications for jobless benefits decreased by 23,000 to 393,000 in the week ended Nov. 24, A report from the Labor Department also showed.
The average nationwide cost for regular gasoline fell 0.6 cent to $3.409 a gallon, AAA said today on its website. That’s the lowest average since July 16. The pump price reached a 2012 high of $3.936 on April 4.
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