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Oil Fall as European Finance Ministers Meet on Greece - report

Oil dropped as euro-area finance ministers met to negotiate a bailout payment for Greece and as American leaders prepared to wrestle with a budget agreement, Bloomberg reported.

It said futures fell as much as 1.1% as officials gathered in Brussels to discuss Greek aid less than a week after a meeting failed to yield an agreement. Republicans and Democrats in the U.S. need to find a budget compromise to avoid triggering $607 billion in tax gains and spending cuts in January that the Congressional Budget Office said could lead to a recession.

Crude oil for January delivery declined 48 cents, or 0.5%, to $87.80 a barrel at 1.45 p.m. on the New York Mercantile Exchange. Prices are down 11% this year.

Brent oil for January settlement fell 37 cents, or 0.3%, to $111.01 a barrel on the London-based ICE Futures Europe exchange.

Finance ministers are dealing with the consequences of a Nov. 12 decision to give Greece two extra years, until 2016, to cut its budget deficit. At an overnight session lasting more than 11 hours a week later, the ministers failed to fill the resulting financing gap or show that Greek debt would drop to a target of 120% of gross domestic product by 2020, a condition set by the International Monetary Fund.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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