As the US budget impasse persist oil prices are seen volatile swinging between gains and losses around the $101.00 per barrel level, yet amid hopes that US lawmakers might soon reach a deal concerns about weaker demand for oil have eased. The US Senate is getting closer towards a deal to raise the nation`s borrowing limit before October 17 deadline and provide temporary government funding. US lawmakers might extend the government`s borrowing authority to February 7. If the Congress fails to reach a deal by Thursday the US financial sector could freeze, threatening the entire global economy, which may result in sharp losses in the equity markets and may push oil prices below the $100-mark. - WTI crude oil futures for November is trading around $101.13 a barrel after falling $0.08 - Brent futures for November settlement is trading around $109.86 a barrel after falling $0.10 Yet, oil prices will stay around the current range until an announcement on a debt deal is made. After that, oil will be very volatile for a while as a huge number of delayed data such as the non-farm payrolls numbers will be released from the US. Fitch already warned it could cut the sovereign credit rating of the United States from AAA, meanwhile, inventors are also watching the outcome of a meeting between world powers and Iran over its nuclear program as everyone awaits concrete actions from Tehran. Due to the US government shutdown, the key weekly report on crude supplies was suspended. The Energy Information Administration ceased operations and furloughed staff, which means that markets will turn to the American Petroleum Institute report. - Natural gas is trading at $3.825 per cubic feet after rising 0.92% - Gasoline is trading at $2.6574 per cubic feet after falling 0.09% - Heating oil (diesel) is trading at $3.0146 a gallon after falling 0.08%
Posted on: Wed, 16 Oct 2013 07:06:43 +0000
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