Oil above US$90 as US cuts cause jitters
By Pamela Sampson, APBANGKOK--The price of oil rose slightly on Tuesday, a day after dropping below US$90 a barrel for the first time this year.
March 6, 2013, 12:34 am TWN
Benchmark oil for April delivery was up 46 cents to US$90.58 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. On Monday, the price fell as low as US$89.33 per barrel before finishing on the Nymex at US$90.12.
Monday's drop was attributed to the introduction in the U.S. of US$85 billion in automatic government spending cuts, which could hurt the world's leading economy.
The oil market will be watching for signs that a deal to claw back the cuts might be in the works.
Brent crude, used to price many kinds of oil imported by U.S. refineries, rose 79 cents to US$110.88 a barrel on the ICE Futures exchange in London.
In other energy futures trading on the Nymex:
— Wholesale gasoline rose 1.1 cent to US$3.109 a gallon.
— Heating oil rose 1.3 cents to US$2.932 a gallon.
— Natural gas gained 5.2 cents to US$3.575 per 1,000 cubic feet.