Oil Continues to Decline as U.S. Government Begins Partial Shutdown

by Nick Bond, KPI Bridge Oil
Tuesday October 1, 2013

Oil on both sides of the Atlantic continued to decline today after the U.S. Government began a partial shutdown for the first time in 17 years and crude supplies continue to rise.

United States lawmakers failed to reach an agreement on a funding bill by midnight last night, causing a number of federal activities to begin shutting down.

News reports say that over 800,000 Americans could now be without pay until a budget agreement is reached.

The impasse caused many investors to fear that economic growth in the states could be hindered, and lead to a decrease in demand for crude.

Brent received some pressure as tensions in the Middle East continue to cool and Libya production returns to normal.

Eyes are now on tomorrows's EIA Inventory report, which many are expecting to show a rise in crude stockpiles as refiners begin seasonal maintenance and run at lower rates.

By day's end WTI only fell $0.29 to settle at $102.04/bbl, while Brent dropped $0.43 to end the session at $107.94/bbl. Bunker prices were soft in the primary ports.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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