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Oil up slightly ahead of Federal Reserve meeting

The Associated Press

Oil is up slightly ahead of a meeting of the Federal Reserve. A gain would be the first in six days.

Benchmark oil rose 10 cents to $85.65 per barrel Tuesday in New York.

The Fed is widely expected to announce a bond-buying program this week designed to help the U.S. economy.

The central bank's policy meeting comes as Congress has shown little sign of nearing an agreement on a budget. Without that, tax increases and spending cuts will take effect Jan. 1 that economists say could push the U.S. into recession.

Meanwhile, oil also is benefiting from a survey indicating German investors believe Europe's largest economy may escape a recession.

At the pump, AAA says the price of gasoline fell about a penny overnight to $3.328 per gallon.