Oil prices dropped today due to concerns among investors that a default by the US may lead to an economic imbalance.

US crude decreased by $1.04 to stand at $98.83 a barrel and Brent crude for September fell by almost $1 to $117.71 a barrel over concerns of decreased oil demand from US, the world’s largest consumer, according to Reuters.

The US Government failed to win an agreement to raise the country’s debt ceiling, which may lead the country to default or cut its social services and, in turn, could lead to a fall in oil demand.