The price of oil wavered between small gains and losses today.
Traders were balancing concerns over an apparent impasse in Washington's critical budget negotiations with enthusiasm over steps taken to boost the slow-growing economy.
President Barack Obama and Republican leaders do not appear to be close a deal to avert the ''fiscal cliff'' before the end of the year.
Without an agreement, hundreds of billions of dollars in tax increases and government spending cuts will automatically take effect in January.
Optimism surrounding the Federal Reserve's latest move to boost the US economy drove oil higher when it was announced last night. Any sign of an improving economy could spur energy demand.
Benchmark crude fell 12 cents to $86.65 a barrel in early afternoon trading in New York. Brent crude, used to price international varieties of oil, fell 55 cents to $107.47 a barrel on the ICE Futures exchange in London.
