Brent crude oil rose above $108 a barrel on Tuesday on signs of progress in talks to resolve a U.S. budget crisis that threatens to tip the world’s top oil consumer into recession.

President Barack Obama made an offer to Republicans that included a major shift in position on tax hikes for the wealthy, leaving lower tax rates in place for everyone earning less than $400,000, a source familiar with the talks said.

Oil and other riskier assets rose after the U.S. president moved away from the $250,000 threshold that Democrats have been demanding for months, closer but still far from Republican House of Representatives Speaker John Boehner’s preference of $1 million.