Oil falls on looming "fiscal cliff" (2)

But the loss in oil prices was checked after U.S. economic data came in positive on Tuesday. U.S. consumer confidence rose in November to the highest level in more than four years, according to a survey conducted by the Conference Board.

Demand for durable goods climbed in October by the most in five months, the U.S. Commerce Department reported, beating market expectations. A separate report from Standard & Poor's showed that the index of home prices in 20 big U.S. cities rose 3 percent in September over the same period of 2011, the biggest increase since July 2010.

Moreover, protests in Egypt against President Mohamed Morsi continued into the fifth day, adding uncertainties to the oil-rich Middle East. Investors worry that if oil production in the region was disrupted, oil prices would surge.

Light, sweet crude for January delivery lost 56 cents, or 0.64 percent, to settle at 87.18 dollars a barrel on the New York Mercantile Exchange. Brent crude for January delivery dropped 1.05 dollars, or 0.95 percent, to finish at 109.87 dollars a barrel.

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