Investing.com - Crude oil futures fell in U.S. trading on Thursday after investors sold for profits on fears that U.S. policymakers may fail to steer the economy away from a year-end fiscal cliff, a combination of tax hikes and spending cuts taking effect at the same time next year.
Failure to avoid the cliff could result in a U.S. recession for 2013, according to government estimates.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD85.90 a barrel on Thursday, down 1.00%, off from a session high of USD86.96 and up from an earlier session low of USD86.05.
The White House and Congressional Republicans remained at odds over how to narrow deficits and pay down debts for 2013, with the former calling for tax hikes on top U.S. earners and the latter calling more for capping tax deductions to increase revenue and cutting more spending elsewhere.
House Speaker John Boehner, an Ohio Republican, said earlier the White House wasn't taking his party's ideas serious, which spooked investors worldwide and sent oil falling on fears of a U.S. slowdown, which would cut into demand for fuels and energy.
Fiscal concerns wiped out gains sustained when the Federal Reserve announced plans to continue stimulating the U.S. economy on Wednesday by adding an additional USD45 billion to its bond-buying program, a move that ups the total of monthly stimulus to USD85 billion.
Such policy tools tend to send oil gaining on sentiments the economy will avoid slowing, which would otherwise crimp demand for fuels and energy, and also on the weakening effects stimulus measures have on the dollar, which makes oil a nicely priced commodity in global markets.
Elsewhere, the U.S. Commerce Department reported earlier that U.S. retail sales increased by 0.3% in November from October, whose rates contracted by 0.3%.
November's figures still missed market forecasts for a gain of 0.5%, which further stoked risk-off trading sentiments.
Meanwhile on the ICE Futures Exchange, Brent oil futures for February delivery were down 1.48% at USD106.42 a barrel, up USD20.52 from its U.S. counterpart.
Failure to avoid the cliff could result in a U.S. recession for 2013, according to government estimates.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD85.90 a barrel on Thursday, down 1.00%, off from a session high of USD86.96 and up from an earlier session low of USD86.05.
The White House and Congressional Republicans remained at odds over how to narrow deficits and pay down debts for 2013, with the former calling for tax hikes on top U.S. earners and the latter calling more for capping tax deductions to increase revenue and cutting more spending elsewhere.
House Speaker John Boehner, an Ohio Republican, said earlier the White House wasn't taking his party's ideas serious, which spooked investors worldwide and sent oil falling on fears of a U.S. slowdown, which would cut into demand for fuels and energy.
Fiscal concerns wiped out gains sustained when the Federal Reserve announced plans to continue stimulating the U.S. economy on Wednesday by adding an additional USD45 billion to its bond-buying program, a move that ups the total of monthly stimulus to USD85 billion.
Such policy tools tend to send oil gaining on sentiments the economy will avoid slowing, which would otherwise crimp demand for fuels and energy, and also on the weakening effects stimulus measures have on the dollar, which makes oil a nicely priced commodity in global markets.
Elsewhere, the U.S. Commerce Department reported earlier that U.S. retail sales increased by 0.3% in November from October, whose rates contracted by 0.3%.
November's figures still missed market forecasts for a gain of 0.5%, which further stoked risk-off trading sentiments.
Meanwhile on the ICE Futures Exchange, Brent oil futures for February delivery were down 1.48% at USD106.42 a barrel, up USD20.52 from its U.S. counterpart.