Oil price again flirting with US$100 per barrel

Oil prices climbed to near US$100 per barrel Tuesday following a series of positive reports about the United States economy.

In midday trading, benchmark crude rose 36 cents to US$98.50 per barrel in New York. Crude jumped as high as US$99.34 at one point. Brent crude, which is used to price many foreign oil varieties, rose 45 cents to US$112.34 per barrel in London.

Prices jumped after the US said that consumer spending rose in October for the fifth straight month. Spending increased for electronics, appliances, hardware and building supplies. Sales also rose at grocery stores, bars and restaurants and health-care stores. Inflation eased last month, as companies paid less for gas, new cars and other goods.

The European Union also said that the 17-nation bloc avoided contracting in the third quarter. The Eurozone economy grew by 0.2 per cent in the July-September period. However, it's still expected to fall into recession as countries like Italy and Greece cut spending to reduce debt.

In other energy trading, heating oil was essentially flat at US$3.1562 per gallon, and gasolene futures rose three cents to US$2.5678 per gallon. Natural gas fell 2 cents to US$3.582 per 1,000 cubic feet.