Investing.com - Crude oil futures fluctuated between small gains and losses in cautious trade on Wednesday, as markets continued to focus on U.S. budget talks amid growing fears of a potential sovereign default.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD101.37 a barrel during European morning trade, up 0.15%.
New York-traded oil futures held in a range between USD100.91 a barrel, the daily low and a session high USD101.48 a barrel. The November contract ended 1.17% lower at USD101.21 a barrel on Tuesday.
Oil futures were likely to find support at USD100.60 a barrel, the low from October 11 and resistance at USD102.58 a barrel, the high from October 14.
On Tuesday, Fitch ratings agency placed its AAA-rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery was little changed to trade at USD109.46 a barrel, with the spread between the Brent and crude contracts standing at USD8.09 a barrel.
Oil traders continued to monitor talks between Western diplomats and Iranian officials in Geneva.
Diplomats from the U.S., Russia, China, France, Britain, and Germany met with their Iranian counterparts to discuss Tehran’s nuclear program on Tuesday. Talks are expected to resume on Wednesday, amid speculation sanctions on the Persian Gulf nation’s oil exports may be eased.
Western-led sanctions on Tehran have cut Iranian oil exports by more than 1 million barrels per day.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD101.37 a barrel during European morning trade, up 0.15%.
New York-traded oil futures held in a range between USD100.91 a barrel, the daily low and a session high USD101.48 a barrel. The November contract ended 1.17% lower at USD101.21 a barrel on Tuesday.
Oil futures were likely to find support at USD100.60 a barrel, the low from October 11 and resistance at USD102.58 a barrel, the high from October 14.
On Tuesday, Fitch ratings agency placed its AAA-rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery was little changed to trade at USD109.46 a barrel, with the spread between the Brent and crude contracts standing at USD8.09 a barrel.
Oil traders continued to monitor talks between Western diplomats and Iranian officials in Geneva.
Diplomats from the U.S., Russia, China, France, Britain, and Germany met with their Iranian counterparts to discuss Tehran’s nuclear program on Tuesday. Talks are expected to resume on Wednesday, amid speculation sanctions on the Persian Gulf nation’s oil exports may be eased.
Western-led sanctions on Tehran have cut Iranian oil exports by more than 1 million barrels per day.