The price of oil is lower as traders worry about a lack of progress in negotiations over U.S. budget issues.
Benchmark oil dropped 94 cents, or 1.1 percent, to $86.24 per barrel Wednesday in New York. The decline was close to 2 percent earlier, but a report showing a drop in U.S. oil inventories has given the price a boost.
President Barack Obama and congressional leaders are working on a budget compromise. Without an agreement, tax hikes and spending cuts will take effect Jan. 1. Economists say the measures could push the U.S. into a recession.
If that happens, it could reduce demand for oil and other energy products.
Other commodities and U.S. stocks are also lower.
At the pump, AAA says gasoline was flat overnight at $3.415 per gallon.
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