Oil rises as optimism over U.S. budget grows

BANGKOK The price of oil rose today as worries receded over whether U.S. political leaders would reach a budget deal before a year-end deadline.

Benchmark crude for January delivery was up 43 cents to $88.93 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract finished down 59 cents at $88.50 a barrel in New York on Tuesday.

U.S. lawmakers have less than a month to reach a compromise to avoid a series of sharp tax increases and spending cuts that take effect in January. Economists believe those measures could send the U.S. back into a recession.