Crude oil prices fell today with investor sentiment clouded by the deadlock in the US over a plan to avoid a devastating default.
They were further weighed down by official data showing that crude inventories surprisingly rose last week in the US - the world's biggest oil consumer.
New York's main contract, light sweet crude for delivery in September, shed $1.21 to $98.38 a barrel. Brent North Sea crude for September dipped 10 cents to $118.18 in late London deals.
US President Barack Obama and his Republican rivals remain divided on how to break an impasse on raising the country's debt ceiling to allow it to pay its bills.
Failure to agree before it runs out of money on August 2 could see the world's richest nation and largest oil user default on its debt, with potentially ruinous global results.
Meanwhile, International Monetary Fund managing director Christine Lagarde this week urged the euro zone to 'quickly' implement its plan to fight a sovereign debt crisis, warning that 'turbulence could easily resurface' soon.
