Oil rises on housing data, 'fiscal cliff' talks - FOX 8 WVUE New Orleans News, Weather, Sports

Oil rises on housing data, 'fiscal cliff' talks

Updated:

NEW YORK (AP) - The price of oil is rising sharply on higher U.S. home prices and hopes of a budget deal in Washington.

U.S. benchmark crude jumped $2.31, or 2.6 percent, to $90.92 a barrel Wednesday in thin post-Christmas trading.

U.S. home prices rose in most major cities in October compared with a year ago, according to a key report. The improvement is adding to economic growth, which generally boosts energy consumption and lifts prices.

Also, President Barack Obama will return to Washington Thursday after a brief vacation to resume budget talks with Congress. Negotiations are aimed at avoiding the "fiscal cliff," the deep budget cuts and tax increases that could slow U.S. growth.

On Monday, concerns over the budget pushed down oil prices. Benchmark crude closed 5 cents lower at $88.61.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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