Oil rises as worries over US budget deal ease

Oil has traded in a narrow range this month as cautious investors await the outcome of budget talks in Washington. Without an agreement, huge tax hikes and spending cuts will automatically take effect Jan. 1 — the deadline dubbed the "fiscal cliff."

Economists say that could push the U.S. back into a recession, and it would mean less demand for oil and other energy products. But Republican House Speaker John Boehner and President Barack Obama both issued statements Wednesday indicating that negotiations were progressing.