Crude retreats in Asia as markets assess impact of US shutdown

03-Oct-13

New York’s main contract, West Texas Intermediate for delivery in November dipped to US$101.5, while Brent North Sea crude for November fell to US$107.5. Crude oil prices have seen a further fall in Asian trade today as investors weighed the economic consequences of the budget crisis that has partially shut down the US government, as per PTI. The shutdown raises concerns about the impact that 800,000 people told to stay away from work without pay would have on growth. With the Government due to run out of cash on October 17, lawmakers must agree to raise the borrowing limit otherwise it will not be able to service its debts and in turn suffer a painful default, which would likely rattle global markets.