Crude oil prices were seen trading flat during the late Asian trading hours on Tuesday, while investors continue to focus on the US government shutdown.
The West Texas Intermediate crude dropped 0.09%, trading at $102.94 a barrel at the time of writing, while the European benchmark Brent crude lost 0.22% to $109.44 a barrel.
Crude Oil Prices – US Government Shutdown
Lawmakers in the US, still haven’t budged on the budget of the world’s largest economy, which has lead to the US second week of its government shutdown, which began on October 1.
Over 800,000 federal employees have been left without pay and idle, with several federal institutions and government services closed.
The ongoing US government shutdown has affected the country’s economy and delaying the expected macroeconomic data releases, including Friday’s payrolls report.
Concerns have been raised on whether the Congress will fail to raise the country’s debt-limit before October 17.
Workers from the oil producers in the Gulf of Mexico, which includes Chevron, Marathon Oil, BHP Billiton, Petrobras and Andarco, resumed at the offshore platforms after tropical storm Karen dissipated.
The Gulf of Mexico accounts for almost 1.3 million barrels a day, almost a fifth of total US oil output.
Almost 62% of the overall production in the region, representing 866,000 barrels per day, was shut down when storm Karen occurred, the US Bureau of Safety and Environmental Enforcement reported on Sunday.
Production at the Kashagan oilfield resumed on Sunday after a gas pipeline from D island of the field to the onshore plant was repaired after a gas leak was detected on September 25, the Oil and Gas Ministry confirmed in a statement.
China’s Growth Lowered
The World Bank lowered its growth outlook for China and the developing countries of East Asia, lowering China’s economy growth outlook to 7.5% this year and 7.7% in 2014. The previous forecast were set at 8.3% for this year and expected to grow at 8% for 2014.
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