Current Oil Prices Move above $85

The current oil price moved above $85 a barrel as instability after the election continued.

On the New York Mercantile Exchange, the crude oil price per barrel gained 75 cents to $85.19 during afternoon trading. That followed a 5 percent drop during the previous day when traders were concerned by worries regarding negotiations on the U.S. budget. Moreover, supplies and output of oil are high which have the tendency to pull prices lower.

A note written by oil analyst Jim Ritterbusch stated that the volatility in the crude oil price per barrel for this week is expected to subside, yet it is still predisposed to fresh lows. The United States has huge oil inventories and output is at its highest in almost 17 years, wrote the analyst.

The average gasoline prices today are higher by almost a cent, to $3.464 a gallon, according to the AAA.

On London’s ICE Futures Exchange, the current oil price of Brent, which is the benchmark used to assign prices to international oil blends, moved 42 cents up to $107.24 a barrel

Elsewhere in the energy markets, wholesale gas gained a cent to $3.60 a gallon. The cost of heating oil moved one cent higher to $2.97 a gallon. And the price of natural gas stayed the same, $3.72 per thousand cubic feet.

The increase in natural gas supplies was lower than what analysts expected, but they are still higher by 6.6 percent compared to the average in five years for this part of the year, said analysts.

By: Chris Termeer

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