Wednesday, December 19, 2012

Oil rises on Europe optimism, drop in US supplies

(AP) ? The price of oil is higher Wednesday as a report of shrinking crude supplies and some good news overseas offset concerns about continued political wrangling in Washington.

Benchmark crude jumped $1.38 to $89.78 per barrel in New York.

The Energy Department's Energy Information Administration reported that the nation's crude oil supplies fell last week, although by about half of what analysts expected.

Oil prices are also getting a boost from a key survey measuring German business optimism. It showed slight improvement, good news for Europe's largest economy.

Prices at the gas pump hit another year-low at a national average just under $3.23 a gallon, only a half-cent higher than a year ago.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-12-19-Oil-Prices/id-49469463bc6443ef8f990c9fea76cd5b

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