LONDON, Dec 20: Global oil prices dipped on Thursday as Democrats and Republicans remain locked in a stalemate over a deal to resolve the US fiscal cliff, analysts said.

New York's main contract, light sweet crude for delivery in February slid 25 cents to $89.73 a barrel.

Brent North Sea crude for February reversed 28 cents to $110.08 a barrel in London afternoon deals.

“Crude oil prices slid lower on Thursday, in a healthy correction, after a recent rally that dominated the oil market in the last few days,” said analyst Myrto Sokou at brokerage Sucden Financial Research.

Traders remain fearful that the fiscal cliff -- due to be implemented on January 1 -- could plunge the world's biggest economy back into recession and ravage global oil demand.

President Barack Obama said on Wednesday he and the Republicans had narrowed differences to “a few hundred billion dollars”. But a deal remains elusive.

Republicans are loath to raise taxes, while Democrats do not want to cut spending on programmes such as Medicare.

House Speaker John Boehner, the Republican negotiating with the president, has said he is willing to extend tax breaks for everyone earning less than $1 million per year.

Obama has said, however, he is willing to go no higher than $400,000.

Boehner announced on Wednesday that he would move to pass his measure, which he describes as his “Plan B”, through the House on Thursday but Obama warned he would veto the legislation.—AFP