Crude oil prices climbed on Wednesday as the leader of the largest-consuming nation opted to cut short his vacation to return to conduct fiscal negotiations before the daunting end-of-year deadline, according to Bloomberg.
More than $600 billion in tax increases and spending cuts are set to automatically begin next year if U.S. President Barack Obama and Speaker of the House John Boehner do not work out a pact regarding the fiscal cliff debacle. Increases to crude oil futures also were prompted by the arrest of intended terrorists by the United Arab Emirates.
"We were poised technically for this gain after Monday's session," market research director Addison Armstrong with Tradition Energy in Connecticut told the news source on Wednesday. "Trading volume was very light until 9 a.m. when it picked up with the open of floor trading. The target was the 100-day moving average of $90.68 and we made it."
At 12:19 p.m. on Wednesday, WTI crude oil futures increased 2.52 percent, a $2.23 gain to $90.87 per barrel. Brent crude oil futures gained 1.76 percent, a $1.91 lift to $110.70 per barrel.
Reuters reports optimism is running high for the likelihood of U.S. leaders hashing out an end-of-year pact.
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