October 9, 2013
As the shutdown persist the report of the stoppage is effecting the market. As the talks continue between Republican and Democratic parties the “Oil edges higher, stays in range” of its targets. The nexuses is oil-gas, economy and government.
Channel New Asia reported, “Oil prices Tuesday edged higher and some production outages lingered in key Middle Eastern oil producers. US benchmark West Texas Intermediate for November delivery rose 46 cents to US$103.49 a barrel on the New York Mercantile Exchange. European benchmark Brent oil put on 48 cents to reach US$110.16 a barrel.”
The oil and gas market is fixated on the D.C. lack of momentum o settle the debt crisis talks.
The WTI benchmark has been trading in a tight range of US$101.50-US$104.50, said Addison Armstrong, senior director of market research at Tradition Energy. The lack of movement is entirely correlated with the lack of progress in Washington,” Armstrong said.”
“Political and social strife in key Middle Eastern oil producers has also created support for oil.”
Many reporters and pundits gauge the distance between D.C. and business as an objective pursuit or theoretical analysis yet, the activities of the shutdown are effecting data capture, loans, grants, contracts and the economy of the furloughed that ripples across the economic and social chain.
One analyst, Matt Smith of Schneider Energy said, “Tuesday’s rise reflects the market’s assumption that “by hook or by crook we will see a resolution to the current government issues faced.”
The watch today is on the weekly US oil inventory report. “Analysts project an increase in stocks of 1.4 million barrels, according to a survey by Dow Jones Newswires.”
Oil and gas are in that chain and holdings its breath until some form or normalcy is restored.
Oil and Gas Related articles
- Crude Oil, Gas Prices Take a Dive (hispanicbusiness.com)
- Oil edges higher, stays in range (skynews.com.au)