Crude-Oil Futures Slip In Asia, Debt Ceiling In Focus Crude-oil futures slipped in Asian session Tuesday as investors waited for a resolution on the debt-ceiling talks in Washington with Oct. 17 deadline for taking a decision fast approaching. On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $102.10 a barrel at 0603 GMT, down 31 cents in the Globex electronic session. November Brent crude on Londons ICE Futures exchange fell 32 cents to $110.72 a barrel. Crude-oil prices could be volatile and markets will be responding to news from Washington in the near-term, said Gnanasekar Thiagarajan, a director with Commtrendz Research. Top Senate leaders Monday said they were within striking distance of a deal to raise the debt ceiling and reopen the federal government two weeks after it was forced to shut down. The direction (in prices) for the next two to three days will depend on the U.S impasse, Mr. Thiagarajan said. He expects a rally in the short term once a resolution to the debt ceiling is announced. It is widely expected the lawmakers in the U.S. will resolve to raise the debt-ceiling before the Oct. 17 deadline and prevent the country from defaulting on its debts. However, the rally could be short-lived as the trend has changed for crude with little supply side risks and demand faltering in China and in the U.S., he added. Trading volumes could remain subdued, analysts said, after the Energy Information Administration confirmed it wont release its closely watched weekly oil data going forward due to the shutdown. The American Petroleum Institute, an industry trade group, will still release its own report on Wednesday, but the EIA data are more widely followed. In addition, improving relations with Iran could mean more than one million barrels of the countrys oil will return to the global market, possibly weighing on prices. Nymex reformulated gasoline blendstock for November--the benchmark gasoline contract--fell 34 points to $2.6634 a gallon, while November heating oil traded at $3.0207, 110 points lower. ICE gasoil for November changed hands at $936 a metric ton, up $4.75 from Mondays settlement.
Posted on: Tue, 15 Oct 2013 06:42:30 +0000
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