By Nick Godt, MarketWatch
NEW YORK (MarketWatch) — Crude-oil futures jumped on Tuesday, as investors cheered a deal between President Barack Obama and Congress to extend tax cuts to all Americans.
Crude-oil futures for January delivery rose $1.16, or 1.3%, to $90.54 a barrel.
Commodities also received a boost as the euro gained and the dollar slumped on expectations that Ireland’s parliament will approve the government’s austerity budget.
With Federal Reserve Chairman Ben Bernanke promising further easing measures should U.S. economic growth remain dangerously anemic, traders feel confident to push prices higher, according to Phil Flynn, energy analyst at PFGBest.
“So with the market getting bailout after bailout and the dollar back to losing value, the oil bulls have the upper hand,” he wrote in a note. “It does not hurt that the Bush tax cuts were extended.”
