Crude oil futures were losing value on Monday as concerns continued strengthening about stalled negotiations between political leaders regarding next year's automatic implementation of more than $600 billion in tax hikes and spending cuts, Bloomberg reports.
Marking a third-straight trading session of losses, the energy commodity is sensitive to ongoing developments in the globe's largest consumer of crude oil. Reuters reports President Barack Obama and Speaker of the House John Boehner, the two top negotiators, are not in Washington. Following the Christmas recess, leaders will have a handful of days to hash out a pact.
"It's all about the U.S. fiscal cliff issue," managing director Victor Shum with IHS Purvin & Gertz told Reuters on Monday. "The chances are that we will get a deal between the White House and the Republicans, but the fact that Boehner failed to get members to support his plan is worrying."
At 8:39 a.m. on Monday, WTI crude oil futures dropped 0.2 percent, an 18-cent fall to $88.48 per barrel. Brent crude oil futures slumped 0.54 percent, a 59-cent drop to $108.37 per barrel.
But prices of the energy commodity were tempered by Syrian strife as the nation struggles with a civil war, according to Reuters.
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