Oil Steady as Deteriorating Budget Talks Counter Growth: Report
Oil in New York fluctuated as concern that U.S. budget negotiations will fail countered better-than-projected economic growth in the worldâs biggest crude-consuming nation, Bloomberg reported.
Futures dropped as much as 0.8% on speculation that efforts to avert the so-called fiscal cliff of tax increases and spending cuts set to start in January are deteriorating. The U.S. economy grew at a 3.1% annual rate in the third quarter, greater than the highest forecast in a Bloomberg survey, according to Commerce Department data released today.
Crude oil for February delivery declined 4 cents to $89.94 a barrel on the New York Mercantile Exchange. Futures are down 9% this year.
Brent oil for February settlement fell 16 cents to $110.20 a barrel on the London-based ICE Futures Europe exchange.
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