Oil prices dropped today, as the US Government’s shutdown continues, which increased fears of a slump in oil demand.
Brent crude slipped by 32 cents to $108.87 a barrel, while US crude was down by 49 cents to settle at $103.61, reported Reuters.
There was an improvement in oil prices after US President Barack Obama tried to break the budget deadlock meeting with Republican and Democratic leaders in Congress, but the prices again started decreasing as the talks failed.
The prices also fell after a huge improvement in US crude stockpiles.
US Energy Information Administration data showed an increase in crude stockpiles by nearly 5.5 million barrels.
During the week to September 27, the US Gulf Coast saw a huge rose of 3.8 million barrels.
Overnight crude prices rose with the news that TransCanada will start its Keystone XL Gulf Coast pipeline by the end of 2013, which will supply crude oil.
Currently the focus of the investors is on the impact of US shutdown on the dollar, which reached with eight month lows in the Asian market in early Thursday.
Image: Oil slips following the US Government’s continued shutdown. Photo courtesy of freedigitalphotos.net.