The price of oil rose slightly Friday as traders weighed a new debt deal in Europe against political bickering in the U.S. over looming tax increases and budget cuts.

U.S. benchmark crude rose 46 cents to $88.51 per barrel Friday morning in New York. In London, Brent crude rose 28 cents to $111.03.

German lawmakers approved further aid to Greece Friday, raising hopes the European debt crisis may begin to wane. But in the U.S. lawmakers reported no progress in talks to avoid a series of tax increases and spending cuts that economists say could drag the U.S. economy into recession if they go into effect at the end of the year.

The average retail gasoline price in the U.S. fell less than a penny to $3.40 per gallon.