NEW YORK: Brent crude prices hovered near unchanged yesterday in choppy, end-of-month trading as investors monitored developments in US budget talks and Middle East tensions continued to support the oil complex.
Brent and US crude remained on pace to post monthly gains, snapping a string of two straight months of decline. Oil futures have been buffeted this week by shifting impressions of negotiations between the US Congress and President Barack Obama on a deal to avert $600bn of tax increases and spending cuts, the “fiscal cliff”, which investors fear could send the economy back into recession.
Oil market participants continue to gauge the potential impact of Egypt’s latest political crisis, which erupted when President Mohamed Mursi gave himself sweeping new powers last week.
Brent January crude was unchanged at $110.76 a barrel at 12:11 pm EST (1711 GMT), having swung from $110.25 to $111.19. Brent seesawed near the 50-day moving average of $110.57 and the 100-day moving average of $110.87. US January crude was up 35 cents at $88.42 a barrel, having reached $88.79, stalling just above the 50-day moving average of $88.63.
Reuters
