Oil falls on concerns over "fiscal cliff" (2)

Moreover, the International Energy Agency said on Monday that the U.S. will overtake Saudi Arabia as the world's leading oil producer by around 2017 and will become a net oil exporter by 2030. The report boosted expectation for more oil supplies and helped push down oil prices.

However, unrest in the Middle East offered support to oil prices on Monday. Syrian war planes tore along the Turkish frontier and bombed a rebel-held town that is inside the border, adding to tension between Syria and Turkey.

Light, sweet crude for December delivery dropped 50 cents, or 0. 58 percent to settle at 85.57 dollars a barrel on the New York Mercantile Exchange. Brent crude for December delivery also slipped and last traded around 109 dollars a barrel.

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