NEW YORK, Aug. 1 (UPI) — Crude oil prices rose sharply in New York, climbing above $97 per barrel after President Barack Obama announced a debt ceiling deal had been reached.
Republicans and Democrats have been sparring for weeks on a budget plan that was tied to the debt ceiling. The Treasury Department had warned lawmakers that without reaching a deal by Aug. 2, the government would have defaulted on many of its bills.
Oil prices had tracked lower on concerns that the political parties might not reach an agreement in time. With Obama’s announcement, West Texas Intermediate crude oil for September delivery shot back up, gaining $1.35 to reach $97.05 per barrel.
Home heating oil prices added 6.93 cents to $3.1687 per gallon. Reformulated blendstock gasoline prices added 5.41 cents to $3.112 per gallon. Henry Hub natural gas prices gained 4.5 cents to reach $4.19 per million British thermal units.
At the pump, the national average price of unleaded gasoline to $3.705 per gallon Monday from Sunday’s $3.707, AAA said.