Oil Falls Below $99 As Debt Talks Stall

Oil prices fell below $99 a barrel Monday in Asia amid investor concern that the lack of an agreement among U.S. lawmakers to raise the country's debt limit could trigger a default and damage the global economy.

Benchmark oil for September delivery was down 95 cents to $98.92 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. Crude rose 74 cents to settle at $99.87 on Friday.

In London, Brent crude slid 68 cents to $117.99 per barrel on the ICE Futures exchange.

Talks stalled during the weekend as an Aug. 2 deadline looms for Congress to raise the government's $14.3 trillion debt limit. Without action by that date, the Treasury will be unable to pay all its bills, which could lead to a debt default and undermine the global economy.

from Alex Kennedy @ the AP