LONDON (Commodity Online): As WTI crude oil prices approach the upper Bollinger Band, sell orders could well be clustered around $89.38 a barrel today where the commodity may face stiff resistance as well. This is according to data compiled by Bloomberg.
Meanwhile crude oil prices have been trading near two-week's high as optimism regarding a solution to the fiscal cliff issue has been creeping in with the morning breeze as well as due to US crude supplies dropping by 4.1 million barrels in the seven days ending December 14. US is the world's biggest economy and the biggest consumer of crude oil.
US Congress' Republican Speaker John Boehner had proposed to extend the Bush tax cuts?the proposal has been called Paln B-- for those making up to $1 million which was rejected by the White House.
"Why not put on the floor something that's what most Americans think the president is talking about, which is protecting from tax increases everybody but truly millionaires and billionaires?," said Republican Representative Pat Tiberi of Ohio to Reuters.
But nobody expects Plan B to emerge out of the Senate with victory.
When it dies in the Senate, he said, "that's not our problem. We can't be held responsible for what the Senate does." Reuters report added.
The Republicans apparently want the blame to be shifted to the shoulders of Democrats, a political game whose characteristics are as old as humanity. The US public, meanwhile thinks that it would be the Republicans who should be held responsible for the economy as and when it goes off the cliff.
But it has to be noted that fiscal cliff Plan B failure has not derailed Plan A.
Obama had made a 'brand new offer' to Republican Speaker John Boehner that would raise taxes by $1.2 trillion and cut $1.22 trillion in federal spending on Monday.
?Obama, whose definition has for months been taxpayers above the $250,000 threshold, traveled to $400,000 in his latest offer. Boehner was at $1 million, but could move down to $500,000.? CNBC.com said in a report.
WTI crude oil prices on the Nymex for delivery on February 13, 2013 is trading at $88.28 a barrel, a loss of 0.14% against the previous close of $88.40. Its European counterpart Brent crude oil for February for delivery on the same date was seen trading at $108.94 a barrel, a gain of 0.02%.
On India's MCX, crude oil for delivery on January 21, 2013 was seen trading at Rs.4867 a barrel, a loss of 0.47% as of 11.05 AM IST.