Oil slips below US$108 as US govt begins shutdown
SINGAPORE (Reuters) - Brent crude fell below US$108 a barrel on Tuesday to trade near a 7-week low on worries a shutdown of the US government may crimp oil demand, while investors also eyed easing tensions in US-Iran nuclear talks.
The US government began a partial shutdown on Tuesday for the first time in 17 years, potentially putting up to 1 million workers on unpaid leave, closing national parks and stalling medical research projects.
"The shutdown of the government would result in the decrease in demand for oil in the world's top oil consumer, pressuring prices, as hundreds of thousands of government employees would be forced to stay home without any pay," Teoh Say Hwa, head of investment at Phillips Futures wrote in a note.
Brent crude for November fell 62 US cents to US$107.75 a barrel by 0433 GMT. US crude was at US$102.01, down 32 US cents.