Oil Falls to Lowest Level in Almost Two Weeks on Budget

Oil dropped to the lowest level in almost two weeks as concern mounted that negotiations to address the U.S. budget deficit will fail.

Futures decreased 0.8 percent after U.S. Senate Majority Leader Harry Reid said yesterday he was disappointed with progress made during talks over $607 billion in tax gains and spending cuts, the so-called fiscal cliff, set to begin in January. Crude rebounded from the day’s lows after an Energy Department report showed supplies unexpectedly fell last week.