Oil prices took a hit today as investors expressed low confidence over the progress of critical US budget talks, which are aiming to deal with the impending fiscal cliff.
Brent crude dropped by 11 cents to hit $110.65 a barrel, while US crude decreased by ten cents to drop to $87.97 a barrel, reports Reuters.
Top US Republican lawmaker and speaker of the House of Representatives John Boehner said the fiscal cliff talks had made no substantive progress, despite President Barack Obama’s desire to close a deal before Christmas.
On Thursday, US economic growth in July-September was revised up to 2.7% from an initial reading of two percent, although consumer and business spending have been revised downwards.
Oil prices were also supported by the ongoing political crisis in Egypt and Western sanctions on Iran.
In Egypt, an alliance of opposition groups has pledged to keep up protests against President Mohamed Mursi’s attempt to amend the constitution, which is described by the protesters as an attempt to "kidnap Egypt from its people".
The US Senate is set to consider a broader set of economic sanctions against Iran to stop the country’s efforts to enrich uranium as part of nuclear programme, which Tehran has said is for civilian purposes.
Image: US House of Representatives speaker John Boehner.