Crude Prices Fall, No Agreement on the U.S. Budget

by Nick Bond, KPI Bridge Oil
Tuesday October 15, 2013

Crude prices retreated today after no agreement on the U.S. budget was reached and talks between Iran and major Western powers began.

Investors remain uncertain about the situation in Washington and when a deal might be reached to raise the debt ceiling and avoid default.

Additional pressure in today's move came as speculators anticipated United States stockpiles rose last week and refiner operations fell.

Due to the current government shutdown, the EIA will not release their report on Wednesday, which is what most focus on for a look at U.S. inventory data. 

However, the API will release their report Wednesday, giving investors some insight as to what crude stockpiles are looking like.

Talks today between Iran and Western powers began, which many believe will begin steps to easing sanctions against Iran.

It may take some time for Iranian crude to enter the marketplace, but the tone so far is said to be positive.

WTI dropped $1.20 to settle at $101.21/bbl, and Brent came back $1.08 to end the session at $109.96/bbl. Bunker prices were softer 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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