Energy prices rose Thursday, as investors anticipate that a deal will be reached in Washington to avert a default on the U.S. government’s debt.
The price of crude oil rose back above $103 a barrel after Republican leaders said they would propose a temporary increase in the U.S. government’s borrowing authority, allowing it to continue to pay its bills on time, including interest on its outstanding debt.
Relieved investors sent energy prices higher after the potential threat to financial markets and the U.S. economy eased.
Oil for November delivery rose $1.40, or 1.4 percent, to close at $103.01 a barrel, reversing most of Wednesday’s decline.
In other energy trading, wholesale gasoline jumped 7 cents to $2.70 per gallon, and heating oil rose 5 cents to $3.07 per gallon.
Natural gas gained 4 cents to $3.72 per 1,000 cubic feet, the highest price since Sept. 19. Forecasts now call for cooler temperatures across a broad region of the middle of the U.S.
Metals futures were little changed. December gold edged down $10.30 to $1,296.90 an ounce.
December silver edged up half a cent to $21.896 an ounce, copper rose 1.75 cents to $3.2485 a pound, January platinum rose $13 to $1,396 an ounce and December palladium rose $8.56 to $712.55 an ounce.
December wheat lost 5 cents to $6.855 a bushel, December corn fell 5.25 cents to $4.3825 a bushel and November soybeans edged up a quarter of a cent to $12.88 a bushel.