Oil Prics - October 3

[dan_s]

From CME Group: November Crude Oil prices experienced a choppy to lower trade during Thursday's US action. Early support for the market came from upbeat Chinese and European economic data that seemed to bolster demand prospects for crude oil. However, lingering uncertainty over the US government shutdown, and little prospects for a near term resolution, seemed to weigh on risk assets like crude oil. Reduced demand prospects and a weaker than expected US service sector data this morning took November Crude Oil down from its new eight day high. While the presence of Tropical Storm Karen in the Gulf of Mexico would normally offer a source of support, that was not enough to rally crude oil back into positive territory. There was a late day break in the crude oil market following the New York close in response to headlines pointing to a shooting outside the Capitol in Washington DC.

IMO Crude oil prices will move higher on good supply/demand fundamentals whenever Washington gets its act together. The Debt Ceiling is where this can really get nasty.