🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Oil trades lower as risk appetite seen slack due to U.S. shutdown

Published 10/06/2013, 08:44 PM
BP
-
XOM
-
NG
-
Investing.com - Oil futures traded lower in the early part of Monday’s Asian session as traders stepped away from riskier assets due to the ongoing U.S. government shutdown.

On the New York Mercantile Exchange, light, sweet crude futures for November delivery fell 0.35% to USD103.48 per barrel in Asian trading Monday. The November contract settled up 0.51% at USD103.84 per barrel last Friday.

Last week, New York-traded crude broke a four-week skid, rising 0.95%. Oil futures were likely to find support at USD101.07 a barrel, the low from October 1 and resistance at USD105.09 a barrel, the high from September 23.

Oil prices were boosted as Tropical Storm Karen continued to bear down on the energy-rich U.S. Gulf Coast prompting oil-rig evacuations ahead of time.

Oil major BP shut in all its oil and natural gas output in the Gulf on Friday, while Exxon Mobil reduced output by 1,000 barrels of oil equivalent a day and pulled nonessential personnel from offshore operations in the region.

However, gains were capped due to the shutdown, the first in the U.S. since the 1990s. The shutdown prevented the release of September’s non-farm payrolls report last Friday and speculation is increasing that if the shutdown runs into the debt-ceiling deadline, the U.S. could see its sovereign credit rating lowered.

Elsewhere, Brazil's government will announce a massive oil discovery off the country's northeast coast later this month, according to MarketWatch. It is expected the find off the coast of the Sergipe state will be the largest new oil discovery announced in the world this year.

Meanwhile, Brent crude futures for November delivery lost 0.07% to USD109.23 per barrel on the ICE Futures Exchange.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.