IV:Crude oil fluctuates with U.S. debt negotiations, Iran talks in focus
Investing.com - Crude oil futures swung between gains and losses on Tuesday, as investors assessed the potential for an agreement to raise the U.S. debt ceiling and ahead of talks over Iran's nuclear program.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD102.26 a barrel during European morning trade, down 0.15%.
New York-traded oil futures held in a range between USD102.08 a barrel, the daily low and a session high USD102.46 a barrel.
The November contract ended 0.38% higher at USD102.41 a barrel on Monday.
Oil futures were likely to find support at USD100.60 a barrel, the low from October 11 and resistance at USD103.57 a barrel, the high from October 10.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
Talks regarding Iran’s nuclear program are also in focus for oil traders. Diplomats from Western nations will meet their Iranian counterparts in Geneva later in the day for two days of talks, which could lead to easing sanctions on the Middle Eastern nation’s oil exports.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery inched up 0.09% to trade at USD111.14 a barrel, with the spread between the Brent and crude contracts standing at USD8.88 a barrel.
