Oil dropped as euro-area finance ministers met to negotiate a bailout payment for Greece and as American leaders prepared to wrestle with a budget agreement.

Futures fell as much as 1.1 percent as officials gathered in Brussels to discuss Greek aid less than a week after a meeting failed to yield an agreement. Republicans and Democrats in the U.S. need to find a budget compromise to avoid triggering $607 billion in tax gains and spending cuts in January that the Congressional Budget Office said could lead to a recession.

Crude oil for January delivery declined to $87.27 a barrel on the New York Mercantile Exchange. Prices are down 11 percent this year.

Brent oil for January settlement fell 54 cents, or 0.5 percent, to $110.84 a barrel on the London-based ICE Futures Europe exchange.