Oil Markets Rally After U.S. Reaches Debt Ceiling Deal

by Nick Bond, KPI Bridge Oil
Wednesday October 16, 2013

Oil markets on both sides of the Atlantic rallied today after Senate leaders finally reached a deal to increase the U.S. debt ceiling and end the 16 day government shutdown.

Prices jumped as investors' confidence increased with the budget issue behind us.

Oil also piggy-backed on equity markets, which also reacted to the news and headed north.

The deal will fund federal agencies through January 15th and extend the debt ceiling through February 7th.

WTI came back slightly after settlement after the API released their inventory report which showed crude stockpiles gained 5.94 million barrels last week, with Cushing gaining approximately 300,000 barrels.

Brent gains were kept in check as talks between Iran and Western countries released a joint statement that Iran had "an outline of a plan" to resolve the nuclear standoff.

WTI rose $1.08, ending the session at $102.29/bbl, while Brent for November settlement expired up $0.90 at $110.86/bbl. Bunker prices were firmer 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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