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Oil inches higher on hopes U.S. government will reopen

Published 10/14/2013, 09:32 PM
Investing.com - Oil futures traded slightly higher during Tuesday’s Asian session on speculation U.S. policymakers will announce an agreement later Tuesday that will end the government shutdown that has stretched into a third week.

On the New York Mercantile Exchange, light, sweet crude futures for November delivery inched up 0.04% to USD102.45 per barrel in Asian trading Tuesday. The November contract settled higher by 0.38% at USD102.41 per barrel on Monday.

Traders are still focusing on Capitol Hill for signs of a budget deal that would reopen the U.S. government and possibly help avert a debt ceiling crisis.

The government in the world’s largest economy is the midst of its first shutdown since the 1990s and fears are high the shutdown will not end before October 17, the day the debt ceiling must be extended or the U.S. risks its first ever sovereign debt default.

There has been some indication that an agreement to reopen the government could come later Tuesday, giving policymakers an opportunity to raise the debt ceiling before the deadline. U.S. stocks have climbed for four straight days, perhaps pricing in a positive outcome on Capitol Hill.

Elsewhere, talks regarding Iran’s nuclear are also in focus for oil traders. Iran’s negotiations with Western nations have analysts forecasting a drop in Brent crude to below $100 a barrel should the talks lead to easing sanctions on the Middle Eastern nation’s oil exports, according to Bloomberg.

Meanwhile, Brent futures for November delivery rose 0.10% to USD110.26 per barrel on the ICE Futures Exchange.


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