After falling below the $103.00 a barrel level, crude oil is now steady around these levels as the persistent US deadlock is expected to hurt demand from the world’s largest oil consumer while the intensifying storm in the Gulf of Mexico may curb supplies.
The US government shutdown stretched to a third day raising worries over its impact on the economy and increasing concerns over another fiscal crisis set to hit Washington. Congress must increase the country`s borrowing limit by October 17 to avoid default.
As nearly a million government workers are home without pay, the US Bureau of Labor Statistics will not release the September key jobs report today due to the government shutdown and a new release date had not yet been set.
- WTI crude oil futures for November is trading around $ 103.15 a barrel after falling $0.16
- Brent futures for November settlement is trading around $ 108.88 a barrel after falling $0.12
Losses however were limited today as Tropical Storm Karen, expected to reach near hurricane strength on Friday, is expected to reach the US Gulf Coast between Louisiana and the Florida Panhandle over the weekend.
Thereby, energy companies in the Gulf of Mexico started shutting down production and evacuating some workers, which is curbing supplies from the region. The Gulf of Mexico provides nearly a fifth of daily US oil output.
Also supporting prices was the weakening US dollar; yet, the rising supplies from Libya and Iraq and the easing tensions between Iran and the West are weighing on prices. The US is considering giving Iran some short-term sanctions relief in return for light on its nuclear program.
- Natural gas is trading at $ 3.51 per cubic feet after rising 0.31%
- Gasoline is trading at $ 2.6323 per cubic feet after falling 0.28%
- Heating oil (diesel) is trading at $ 3.0014 a gallon after falling 0.06%