WTI ends back above $90 per barrel

Crude oil prices rose on Tuesday, ending back above the $90 per barrel level after declining in recent days.

Prices were sent higher by news that freezing weather in the US Midwest had forced the closure of several crude oil pipelines in the region, some of which serve the key depot at Cushing, Oklahoma.

Also tending to send prices higher were projections that Wednesday’s US inventories report will show that crude oil stockpiles were down again in the week ending 7 December.

January contracts for West Texas Intermediate crude added $2.16 to $90.02 per barrel at the close of trade on the New York Mercantile Exchange after going as high as $90.55 earlier.

The peak price came before the Federal Reserve announced that it would cut interest rates by a quarter point to 4.25 percent, but prices settled back slightly after the decision.

Nymex January gasoline added 4 cents to $2.29 per gallon while January heating oil was up 4.5 cents to $2.52 per gallon and January natural gas gained 8.5 cents to $7.11 per million British thermal units.

Meanwhile, at-the-pump prices for gasoline were down 0.8 cent overnight, falling to $2.995 per gallon on the average nationwide, and analysts forecast that pump prices will likely continue to drop for the next several weeks.