NEW YORK (AP)-oil prices rise above $ 98 a barrel Monday after a holiday retail sales buyers pumped in the US, and investors are betting that Europe will find a last minute solution to the financial crisis.
Benchmark crude rose $ 1.44 to end the day at $ 98.21 per barrel in New York. Brent crude, which is used for the price of foreign oil — including many imported by U.S. refineries to create gasoline – up $ 2.26 to settle at $ 108.02 a barrel in London.
Benchmark oil has recovered much lost ground since November 16, when it hit $ 102.59 per barrel. Prices recovered Monday after a strong holiday sales in the u.s., where shoppers spend almost $ 1 billion more Black Friday than they did last year. Weekend sales strong is a promising sign that consumers open their wallets a little wider.
"The US is probably doing better than we give it credit for," PFGBest analyst Phil Flynn said. "Consumers are buying again, and it's going to get manufacturers to produce more products, and it will take more energy to make and distribute goods."
Meanwhile European leaders are considering a new solution to credit problems, with a little time left to defend the euro currency and possibly head off a recession in the region. Among the ideas is the plan for the countries of the eurozone with the best credit to pool their resources to help members of the country's most indebted block 17 currencies.