Crude Oil Futures Fall Over US Fiscal Cliff Worries

Prices of crude oil futures declined in the Asian session Tuesday as a lack of progress in negotiations for a deal to avert the US fiscal cliff weighed on sentiment.

During the European trade, on the New York Mercantile Exchange, light sweet crude futures for delivery in January edged declined USD88.88 a barrel down 0.25 percent on the day. In the Asian session, Brent crude oil futures for the January delivery fell 0.29 percent or 32 cents to $110.60 a barrel on the ICE futures exchange in London.

Oil traders are also looking ahead to fresh weekly information on the US stockpiles of crude and refined oil products to weigh the strength of oil demand in US — the world’s largest oil consuming country, responsible for almost 22% of global oil demand.

Meanwhile in the Euro zone, European finance ministers approved on Monday night the release of 39.5 billion Euros of bailout funds to Spanish banks. This would be the first tranche of maximum 100 billion Euros formally approved by the Euro finance ministers back in June.

Euro rose to $1.3075 as of 12:28 GMT +3, after opening at $1.3053. The EUR/USD pair set an intraday high of $1.3080 and low of $1.3044.