Oil ends lower as 'fiscal cliff' concerns grow

By: Associated Press Email
By: Associated Press Email

The price of oil is ending lower Thursday as doubts increased over political leaders' ability to strike a deal in budget negotiations.

Benchmark crude is down 88 cents to $85.89 per barrel in New York.

Enthusiasm over the U.S. Federal Reserve's plan to boost the economy, announced Wednesday, is being replaced by fears 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.

The average gas price across the U.S. dropped to $3.30 a gallon, the lowest point since July 3.

Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WNDU - Channel 16 54516 State Road 933 South Bend, IN 46637 Front Desk: 574-284-3000 Newsroom: 574-284-3016 Email: newscenter16@wndu.com
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 183446471 - wndu.com/a?a=183446471
Gray Television, Inc.