Oil dropped from the highest level in four months in New York as European finance ministers were set to meet today to discuss the region’s debt crisis and as U.S. lawmakers vote this week on budget measures.

West Texas Intermediate futures slid as much as 0.5 percent, declining for the first time in four days. House Republicans will use the planned Jan. 23 vote on a debt-ceiling increase to try to force Senate Democrats to outline their spending plans. Finance ministers in Brussels will assess Spain, Greece and Cyprus and debate how to enact policies they promised to subdue the region’s crisis.

Finance ministers are debating whether the 500 billion euro ($666 billion) European Stability Mechanism should take over earlier bank bailouts that were routed through governments, and what to do with so-called legacy assets. A European Union aide who briefed reporters defined those as loans already on a bank’s balance sheet that could later cause difficulties.

WTI crude for February delivery, which expires tomorrow, fell as much as 51 cents to $95.05 a barrel in electronic trading on the New York Mercantile Exchange. The more active March contract was down 46 cents at $95.58. Front-month futures rose 7 cents on Jan. 18 to the highest close since Sept. 17.

With floor trading closed today for the Martin Luther King Jr. holiday, the average volume of all WTI contracts was 80 percent below the 100-day average.

Brent for March settlement on the London-based ICE Futures Europe exchange dropped as much as 48 cents, or 0.4 percent, to $111.41 a barrel. 

The price of gold is kept in the range of the previous session in anticipation of further easing by the Bank of Japan.

Analysts suggest that the Bank of Japan on Tuesday announced the acquisition of the assets indefinitely as long as inflation does not reach 2 percent. In the past, gold has risen in price for 12 years in a row by the easing of many central banks.

In the past few years, Japan has sold more gold than to buy, but aggressive monetary policy can revive interest in buying precious metal, analysts said.

Demand in the physical market Asia is growing since the beginning of the year on the eve of the New Year according to the lunar calendar in China, which is struggling to India for leadership in the use of gold. Consumption growth will continue until February 10, to this day this year Chinese New Year falls.

On Monday, Citi analysts forecast lowered the price of gold this year, but at the same time raised forecasts for prices for platinum group metals. The bank now expects the average price of gold at the end 2013 at 1675 dollars per ounce, which is 4% lower than the previous forecast. The outlook for platinum price was increased by 1.5% to $ 1,700, and the outlook for palladium - by 4.2% to $ 775 per ounce.

February futures price of gold on COMEX today trading under 1684.80 - 1691.10 dollars per ounce.