Investing.com - Crude oil futures eased down in quiet pre-holiday trade on Monday, as appetite for growth-linked assets weakened amid reduced hopes for a U.S. budget deal before the year-end deadline.
Trading was expected to remain subdued, with year-end positioning driving flows and as holidays in many countries limit activity.
On the New York Mercantile Exchange, light sweet crude futures for delivery in February traded at USD88.55 a barrel during European morning trade, down 0.15% on the day.
New York-traded oil prices were stuck in a tight trading range between USD88.44 a barrel, the daily low and a session high of USD88.83 a barrel.
Market remained focused on developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Doubts over whether a deal will be reached ahead of the year-end intensified last week after Republican lawmakers canceled a vote on fellow Republican House Speaker John Boehner’s “Plan B” fiscal cliff option, which called for tax increases only on Americans earning USD1 million or more per year.
The U.S. House has adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff.
Without a deal, the U.S. could fall back into recession and drag much of the world down with it.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery shed 0.35% to trade at a one-week low of USD108.58 a barrel, with the spread between the Brent and crude contracts standing at USD20.03 a barrel.
Trading was expected to remain subdued, with year-end positioning driving flows and as holidays in many countries limit activity.
On the New York Mercantile Exchange, light sweet crude futures for delivery in February traded at USD88.55 a barrel during European morning trade, down 0.15% on the day.
New York-traded oil prices were stuck in a tight trading range between USD88.44 a barrel, the daily low and a session high of USD88.83 a barrel.
Market remained focused on developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Doubts over whether a deal will be reached ahead of the year-end intensified last week after Republican lawmakers canceled a vote on fellow Republican House Speaker John Boehner’s “Plan B” fiscal cliff option, which called for tax increases only on Americans earning USD1 million or more per year.
The U.S. House has adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff.
Without a deal, the U.S. could fall back into recession and drag much of the world down with it.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery shed 0.35% to trade at a one-week low of USD108.58 a barrel, with the spread between the Brent and crude contracts standing at USD20.03 a barrel.