Oil prices retreat on US debt deal uncertainty

Oil prices dropped Tuesday as traders waited for lawmakers in U.S. Congress to agree a deal to reopen the government and raise the debt ceiling. U.S. House Speaker John Boehner said after a GOP meeting Tuesday morning that there is no decision yet on "what exactly we will do." Senate Majority Leader Harry Reid immediately expressed his disappointment in what Boehner said. Reid said that the House proposal bears no relation to what the Senate has discussed. Both Reid and Senate Minority Leader Mitch McConnell said Monday they were "optimistic" about reaching an agreement this week after "constructive" talks over the past couple of days. U.S. President Barack Obama planned to meet with members of the House Democratic leaders on Tuesday afternoon. House Minority Leaders Nancy Pelosi and some Congress members are expected to attend the meeting, the White House said in a statement. The start of talks in Geneva, Switzerland, on Iran's nuclear program also weighed on crude prices. The negotiations followed a telephone conversation between Iranian President Hassan Rouhani and Obama last month, the highest-level contact between the two countries' leaders since 1979. Traders expected the end of U.S.-led sanctions against Iran would allow the country to increase oil exports which have fallen a lot over the past two years. Light, sweet crude for November delivery decreased 1.2 dollars to settle at 101.21 dollars a barrel on the New York Mercantile Exchange,while Brent crude for November delivery lost 1.08 dollars to close at 109.96 dollars a barrel.