Summary Oil ended lower as doubts increased over political leaders' ability to strike deal in budget talks.
Oil finished lower Thursday as doubts increased over political leaders ability to strike a deal in budget negotiations.
Enthusiasm over the U.S. Federal Reserve s plan to boost the economy, announced Wednesday, was replaced by concerns that President Barack Obama and Republican leaders were as far apart as ever on reaching a budget deal before year s end. Without an agreement, significant tax increases and government spending cuts will automatically take effect.
That so-called "fiscal cliff" could pull the U.S. economy into recession, likely hurting demand for energy.
Benchmark crude lost 88 cents to end at $85.89 per barrel in New York.
Brent crude, used to price international varieties of oil, finished down $1.56 at $106.46 a barrel on the ICE Futures exchange in London.
