Preoccupations about collapsing negotiations in the U.S. regarding the fiscal cliff dragged crude oil prices to their lowest rate in nearly two weeks on Wednesday, according to Bloomberg.
Harry Reid, majority leader of the U.S. Senate, indicated on Tuesday that he is discouraged by the laggardly progress thus far in discussing the $600-billion-plus in tax gains and spending cuts set to be enacted with the dawning of the new year. But those losses were tempered by a U.S. Energy Department report indicating inventories in the globe's top consumer of the energy commodity surprisingly slipped last week.
Economic and political concerns are dominating market sentiment right now," senior managing director Adam Wise with Manulife Asset Management in Boston told the news source on Wednesday. "The failure to reach an efficient resolution to the fiscal-cliff issue is raising concern about the economy."
At 4:31 p.m. on Wednesday, WTI crude oil futures fell 0.61 percent, a 53-cent loss to $86.65 per barrel. At 4:30 p.m., Brent crude oil futures lost 0.16 percent, an 18-cent slide to $109.69 per barrel.
The Wall Street Journal reports the losses were minimized by U.S. equities' surprise rally in the afternoon.
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