Crude fell for a second day after a government report showed gasoline supplies climbed to a nine- month high as demand weakened.

Prices dropped as much as 0.6 percent as the Energy Department said gasoline stockpiles rose to 223.1 million last week and inventories of heating oil and diesel also increased. President Barack Obama summoned congressional leaders to a meeting three days before a year-end deadline to avoid $600 billion in spending cuts and tax increases, collectively known as the fiscal cliff.

West Texas Intermediate oil for February delivery fell to $90.32 a barrel on the New York Mercantile Exchange. Prices have gained 2.2 percent this week. Oil traded at $91.24 a barrel before the release of the report at 11 a.m. in Washington, two days later than usual because of the Christmas holiday.

Brent oil for February settlement slid 66 cents, or 0.6 percent, to $110.14 a barrel on the London-based ICE Futures Europe. The number of contracts trading was 45 percent lower than the 100-day average. The European benchmark crude was at a premium of $19.53 to WTI.

The price of gold is reduced for the first time in a week amid headlines that President Obama is reported to offer a reduced budget package when he meets with congressional leaders on Friday night.

President Barack Obama and Vice President Joe Biden on Friday to meet with congressional leaders from both parties to resume negotiations on the "budget cliff", and the House of Representatives will meet on Sunday to make a final attempt to solve the financial problem.

If politicians fail to agree, gold will go up as a low-risk assets, but since many investors buy gold as well as stock prices can go up and in the case of an agreement following the stock prices.

Since the budget issue is now the focus, better statistics on the industry and the housing market have had little support to the market. So, today it became known that the U.S. industry has gained pace in December, and the index of pending home sales rose in November by 1.7% to 106.4 points, exceeding economists' forecasts.

Over the year, prices will rise the 12th year in a row due to the extremely low interest rates, concerns over the financial stability of the eurozone and purchases of gold by central banks. In 2013, global demand for gold will rise by China and India, which will contribute to further price increases, according to the World Gold Council.

Premium for gold bullion held in Singapore at $ 1,00-1,20 per ounce to spot prices in London.

February futures price of gold on the COMEX fell today to 1654.20 dollars per ounce.

Change % Change Last

Oil$91.03+0.16+0.18%